Specification and testing of models estimated by quadrature |
| |
Authors: | Geert Dhaene J. M. C. Santos Silva |
| |
Affiliation: | 1. Department of Economics, Katholieke Universiteit Leuven, Leuven, Belgium;2. Department of Economics, University of Essex, UK;3. CEMAPRE, Lisbon, Portugal |
| |
Abstract: | This paper proposes a test to check the specification of models with unobserved individual effects integrated out by quadrature and also a simple way of increasing the flexibility of this type of model. The results of a Monte Carlo study and an application using a well‐known dataset illustrate the finite sample properties of the proposed methods and their implementation in practice. Copyright © 2010 John Wiley & Sons, Ltd. |
| |
Keywords: | |
|
|