Specification Tests for the Partial Adjustment and Adaptive Expectations Models

Howard E. Doran

American Journal of Agricultural Economics, 1988, vol. 70, issue 3, 713-723

Abstract: The partial adjustment and adaptive expectations hypotheses give rise to simple dynamic models with a long history in empirical research. Tests of their adequacy, however, do not appear to figure prominently in the literature. Specification tests are derived by nesting these two models in the more general partial adjustment-adaptive expectations model and deriving the likelihood ratio, Lagrange multiplier, and Wald tests. Monte-carlo experiments are conducted to assess the power of these tests (together with other tests, including Durbin's h-test) for small samples.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.2307/1241510 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:ajagec:v:70:y:1988:i:3:p:713-723.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().