hello everybody,
can anybody tell me in the regression y=c(1)+c(2)*x + e , how can I test the hypothesis h0:c(1)=0 and h0: c(2)>=1 in eviews?
Should I test both together with wald test or I should separate them?
I want to tell that y converges to x. therefore I haveto tell c(1)=0 and c(2)<1.
many thanks in advance
restriction for coefficients
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Re: restriction for coefficients
mehraban wrote:hello everybody,
can anybody tell me in the regression y=c(1)+c(2)*x + e , how can I test the hypothesis h0:c(1)=0 and h0: c(2)>=1 in eviews?
Should I test both together with wald test or I should separate them?
I want to tell that y converges to x. therefore I haveto tell c(1)=0 and c(2)<1.
many thanks in advance
This is actually a very hard problem. The first part of the hypothesis calls for a two-tailed test and the second calls for a one-tailed test. Putting those together would not be easy.
Re: restriction for coefficients
startz wrote:mehraban wrote:hello everybody,
can anybody tell me in the regression y=c(1)+c(2)*x + e , how can I test the hypothesis h0:c(1)=0 and h0: c(2)>=1 in eviews?
Should I test both together with wald test or I should separate them?
I want to tell that y converges to x. therefore I haveto tell c(1)=0 and c(2)<1.
many thanks in advance
This is actually a very hard problem. The first part of the hypothesis calls for a two-tailed test and the second calls for a one-tailed test. Putting those together would not be easy.
thank you for your answer. could you please guide me how can I test the second part i.e. c(2)<1 ?
for the first part I know I can use the Wald test separately. but the Wald test doesn't work when I restrict c(2)>=1 as the null hypothesis suggests!
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- Non-normality and collinearity are NOT problems!
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- Joined: Wed Sep 17, 2008 2:25 pm
Re: restriction for coefficients
Doing the tests separately isn't really right I'm afraid.
If you want to test an inequality constraint, you ask EViews to do the test using the equal sign and then take one-half the reported p-value.
If you want to test an inequality constraint, you ask EViews to do the test using the equal sign and then take one-half the reported p-value.
Re: restriction for coefficients
startz wrote:Doing the tests separately isn't really right I'm afraid.
If you want to test an inequality constraint, you ask EViews to do the test using the equal sign and then take one-half the reported p-value.
Wald test can not be used for one tailed constraint? i.e. for b>=1
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: restriction for coefficients
mehraban wrote:startz wrote:Doing the tests separately isn't really right I'm afraid.
If you want to test an inequality constraint, you ask EViews to do the test using the equal sign and then take one-half the reported p-value.
Wald test can not be used for one tailed constraint? i.e. for b>=1
I just explained how to do it.
Re: restriction for coefficients
startz wrote:mehraban wrote:startz wrote:Doing the tests separately isn't really right I'm afraid.
If you want to test an inequality constraint, you ask EViews to do the test using the equal sign and then take one-half the reported p-value.
Wald test can not be used for one tailed constraint? i.e. for b>=1
I just explained how to do it.
I see, but there is no p-value reported in the output page of the Wald test!
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: restriction for coefficients
mehraban wrote:startz wrote:mehraban wrote:
Wald test can not be used for one tailed constraint? i.e. for b>=1
I just explained how to do it.
I see, but there is no p-value reported in the output page of the Wald test!
Yes there is. It's the column marked "probability."
Re: restriction for coefficients
startz wrote:mehraban wrote:startz wrote:I just explained how to do it.
I see, but there is no p-value reported in the output page of the Wald test!
Yes there is. It's the column marked "probability."
Dear Startz
sorry to take your time again, but the reported probability is 0.0000
therefore, taking one-half of the probability, it is still zero. so H0:c(2)=1 is rejected and it is not equal to 1.that is right, but then how can I understand that c(2)>=1 or c(2)<1?
Last edited by mehraban on Mon Mar 01, 2021 4:14 pm, edited 1 time in total.
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- Non-normality and collinearity are NOT problems!
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- Joined: Wed Sep 17, 2008 2:25 pm
Re: restriction for coefficients
mehraban wrote:startz wrote:mehraban wrote:
I see, but there is no p-value reported in the output page of the Wald test!
Yes there is. It's the column marked "probability."
Dear Startz
sorry to take your time again, but the reported probability is 0.0000
therefore, by divideding p by 2 , it is still zero. so it says b is not equal to 1. then how can I understand that b>=1 or b<1?
Well, given the p-value, if the estimate is below 1, you can be pretty sure b is not greater than1. If the estimate is above one, you can be pretty sure b is not below 1.
Re: restriction for coefficients
startz wrote:mehraban wrote:startz wrote:
Yes there is. It's the column marked "probability."
Dear Startz
sorry to take your time again, but the reported probability is 0.0000
therefore, by divideding p by 2 , it is still zero. so it says b is not equal to 1. then how can I understand that b>=1 or b<1?
Well, given the p-value, if the estimate is below 1, you can be pretty sure b is not greater than1. If the estimate is above one, you can be pretty sure b is not below 1.
that is right, thank you very much for your help
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