[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

From |
Kit Baum <baum@bc.edu> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
st: Re: Ramsey test interpretation |

Date |
Sat, 19 Sep 2009 06:10:06 -0400 |

<>

Kit On Sep 19, 2009, at 2:33 AM, Clive wrote:

Many scholars incorrectly interpret a non-significant F ratio to support the conclusion that we have included all the relevant variables, when it actually means that there are almost certainly no omitted _nonlinear_ variables to include on our model. In your case, F is significant, so you may well have omitted some quadratic, cubic or otherwise nonlinear variables (or, indeed, nonlinear transformations of your existing variables) in your model. Once you've included them and fit the model, running -ovtest- again may produce a different outcome.

Kit Baum | Boston College Economics & DIW Berlin | http://ideas.repec.org/e/pba1.html

An Introduction to Modern Econometrics Using Stata | http://www.stata-press.com/books/imeus.html * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

- Prev by Date:
**st: RE: Simulation: return overidentifying statistics** - Next by Date:
**st: RE: Simulation: return overidentifying statistics** - Previous by thread:
**Re: AW: st: AW: programming help---adjust standard error with -cluster- option by two dimensions** - Next by thread:
**st: Bootstrap and p-values** - Index(es):

© Copyright 1996–2016 StataCorp LP | Terms of use | Privacy | Contact us | What's new | Site index |