Hypothesis Testing sum of coefficients = zero?

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akb0316
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Joined: Mon May 10, 2010 9:13 pm

Hypothesis Testing sum of coefficients = zero?

Postby akb0316 » Mon May 10, 2010 9:33 pm

Hello,

I have just started using eviews for a project where the model is: ln_gdp c ln_I/GDP ln_n+g+d ln_school
where I/GDP equals investment/GDP, n+g+d = pop growth and school = percent of pop of working age.

I need to test the hypothesis that the sum of the coefficients of the dependent variables is 0. Do I just do a wald test with restrictions: C(2) + C(3) + C(4) = 0? And how do I interpret the results?

Thanks in advance!

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