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What criteria should I use to select the order of the Polynomial to use in the Wald test regression. For example, when do I use yhat^2, OR yhat^2, yhat^3, OR yhat^2, yhat^3, yhat^4 etc?

Thanks

Thanks for this. The wald test works. What criteria do you use to select the order of polynomial to use in the regression to be tested? For example, when do you use yhat^2, and whnet do you use yhat^2, yhat^3 etc?

I am estimating a time-fixed effects model. The white test suggests the presence of heteroscedasticity. I have corrected for this using the White period robust coefficient variance estimator. When I apply this correction, the coefficient standard errors change, and in turn the t-statistic and prob(t...