The effects of bandwidth changes on model validity: an empirical study

Lawrence Dacuycuy

Applied Economics Letters, 2006, vol. 13, issue 10, 629-633

Abstract: This simple study uses a variant of the Hsiao et al. (2006) test to analyse the impact of bandwidth changes on model validity using actual labour force data on workers in the Philippines. The test framework is used to verify the validity of several wage specifications. Results indicate that the tests are quite sensitive to chosen bandwidths for discrete regressors.

Date: 2006
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DOI: 10.1080/13504850600825188

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