Chow Breakpoint Test
Posted: Tue Apr 19, 2011 5:00 am
Hi everyone!
I was wondering if someone could help me in the interpretation of my data. I'm looking at CO2 emissions and GDP from 1960-2007. And from my CO2 emissions plot, I can see a large fall starting from the year 1978. So I've used the Chow test to look for any structural breaks, taking the year 1977 as my breakpoint date.
As a result, I've gotten an Fstat value of 3.228 and Prob.F(3,42)=0.0269
Does that mean I reject the null hypothesis of pooling restriction at 5% and conclude no evidence of a break!?! I'm quite confused! Help please!
I was wondering if someone could help me in the interpretation of my data. I'm looking at CO2 emissions and GDP from 1960-2007. And from my CO2 emissions plot, I can see a large fall starting from the year 1978. So I've used the Chow test to look for any structural breaks, taking the year 1977 as my breakpoint date.
As a result, I've gotten an Fstat value of 3.228 and Prob.F(3,42)=0.0269
Does that mean I reject the null hypothesis of pooling restriction at 5% and conclude no evidence of a break!?! I'm quite confused! Help please!