EconPapers    
Economics at your fingertips  
 

A Correction for Local Biasedness of the Wald and Null Wald Tests

Kim-Leng Goh and Maxwell King

Oxford Bulletin of Economics and Statistics, 1999, vol. 61, issue 3, 435-450

Abstract: This paper proposes a procedure to overcome the problem of small‐sample local biasedness of the Wald test of a single restriction. The new test procedure involves finding two critical values, in order to obtain the desired size and local unbiasedness. Simulation results indicate that the Wald test corrected in this way still shares the non‐monotonic power behaviour of the original test reported in the literature. We extend the new test procedure to the null Wald test recently developed to resolve power non‐monotonicity, and obtain good power properties.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1468-0084.00137

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:obuest:v:61:y:1999:i:3:p:435-450

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0305-9049

Access Statistics for this article

Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple

More articles in Oxford Bulletin of Economics and Statistics from Department of Economics, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-19
Handle: RePEc:bla:obuest:v:61:y:1999:i:3:p:435-450