Book contents
- Frontmatter
- Contents
- Preface
- User Guide
- 1 Introduction
- PART 1 DESCRIPTION
- PART 2 INFERENCE
- 9 Monte Carlo Simulation
- 10 Review of Statistical Inference
- 11 The Measurement Box Model
- 12 Comparing Two Populations
- 13 The Classical Econometric Model
- 14 The Gauss–Markov Theorem
- 15 Understanding the Standard Error
- 16 Confidence Intervals and Hypothesis Testing
- 17 Joint Hypothesis Testing
- 18 Omitted Variable Bias
- 19 Heteroskedasticity
- 20 Autocorrelation
- 21 Topics in Time Series
- 22 Dummy Dependent Variable Models
- 23 Bootstrap
- 24 Simultaneous Equations
- Glossary
- Index
17 - Joint Hypothesis Testing
from PART 2 - INFERENCE
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Preface
- User Guide
- 1 Introduction
- PART 1 DESCRIPTION
- PART 2 INFERENCE
- 9 Monte Carlo Simulation
- 10 Review of Statistical Inference
- 11 The Measurement Box Model
- 12 Comparing Two Populations
- 13 The Classical Econometric Model
- 14 The Gauss–Markov Theorem
- 15 Understanding the Standard Error
- 16 Confidence Intervals and Hypothesis Testing
- 17 Joint Hypothesis Testing
- 18 Omitted Variable Bias
- 19 Heteroskedasticity
- 20 Autocorrelation
- 21 Topics in Time Series
- 22 Dummy Dependent Variable Models
- 23 Bootstrap
- 24 Simultaneous Equations
- Glossary
- Index
Summary
“Well”, [Pearson] said “I do not know how old I was, but I was sitting in a high chair and I was sucking my thumb. Someone told me to stop sucking it and said that unless I did so the thumb would wither away. I put my two thumbs together and looked at them for a long time. ‘They look alike to me,’ I said to myself. ‘I can't see that the thumb I suck is any smaller than the other. I wonder if she could be lying to me.’”
Walker (1958, p. 13)Introduction
Chapter 16 shows how to test a hypothesis about a single slope parameter in a regression equation. This chapter explains how to test hypotheses about more than one of the parameters in a multiple regression model. Simultaneous multiple parameter hypothesis testing generally requires constructing a test statistic that measures the difference in fit between two versions of the same model.
An Example of a Test Involving More than One Parameter
One of the central tasks in economics is explaining savings behavior. National savings rates vary considerably across countries, and the United States has been at the low end in recent decades. Most studies of savings behavior by economists look at strictly economic determinants of savings. Differences in national savings rates, however, seem to reflect more than just differences in the economic environment. In a study of individual savings behavior, Carroll et al.
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- Introductory EconometricsUsing Monte Carlo Simulation with Microsoft Excel, pp. 453 - 489Publisher: Cambridge University PressPrint publication year: 2005