Applying the RESET test in allocation models: a cautionary note
David Giles () and
Applied Economics Letters, 1997, vol. 4, issue 6, 359-363
Some of the issues which arise if the RESET test is used to validate the functional form of the equations in an allocation model are discussed. The simple application of this test, equation, by equation, is inappropriate on various grounds. The appropriate formulation of the RESET test in a full systems context requires care. This is discussed and illustrated with Engel curves for expenditure on alcoholic beverages in Australia. The same principles apply to other 'variable addition tests' used in econometrics.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:4:y:1997:i:6:p:359-363
Ordering information: This journal article can be ordered from
Access Statistics for this article
Applied Economics Letters is currently edited by Anita Phillips
More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().