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Mean adjustment and the CUSUM test for structural change
Affiliation:1. School of Veterinary Science, Massey University, Private Bag 11-222, Palmerston North, 4442, New Zealand;2. Diagnostic and Surveillance Services, Biosecurity New Zealand, Tiakitanga Pūtaiao Aotearoa, Ministry for Primary Industries, Manatū Ahu Matua, PO Box 2526, Wellington, 6140, New Zealand;3. Cardiff School of Geography and Planning, Cardiff University, King Edward VII Avenue, Cardiff, CF10 3WA, United Kingdom;1. GD Animal Health, PO Box 9, 7400 AA Deventer, The Netherlands;2. ANDA, Leeuweriksweide 190, 6708 LN Wageningen, The Netherlands;1. School of Veterinary Medicine and Science, University of Nottingham, Sutton Bonington LE12 5RD, UK;2. Faculty of Medicine Health and Social Care, Canterbury Christ Church University, North Holmes Road, Canterbury CT1 1QU, UK;1. GD Animal Health, PO box 9, 7400 AA Deventer, The Netherlands;2. Department of Farm Animal Health, Faculty of Veterinary Medicine, Utrecht University, PO Box 80151, 3508 TD Utrecht, The Netherlands
Abstract:We show that the common practice of mean adjusting the data prior to regression and testing has serious implications for the null distribution of the CUSUM test for structural change.
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