Hypothesis Testing sum of coefficients = zero?
Posted: 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!
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!