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WEIGHTED AVERAGE POWER SIMILAR TESTS FOR STRUCTURAL CHANGE IN THE GAUSSIAN LINEAR REGRESSION MODEL

Title: WEIGHTED AVERAGE POWER SIMILAR TESTS FOR STRUCTURAL CHANGE IN THE GAUSSIAN LINEAR REGRESSION MODEL
Authors: Forchini, Giovanni
Source: Econometric Theory ; volume 24, issue 5, page 1277-1290 ; ISSN 0266-4666 1469-4360
Publisher Information: Cambridge University Press (CUP)
Publication Year: 2008
Description: Average exponential F tests for structural change in a Gaussian linear regression model and modifications thereof maximize a weighted average power that incorporates specific weighting functions to make the resulting test statistics simple. Generalizations of these tests involve the numerical evaluation of (potentially) complicated integrals. In this paper, we suggest a uniform Laplace approximation to evaluate weighted average power test statistics for which a simple closed form does not exist. We also show that a modification of the avg- F test is optimal under a very large class of weighting functions and can be written as a ratio of quadratic forms so that both its p -values and critical values are easy to calculate using numerical algorithms.
Document Type: article in journal/newspaper
Language: English
DOI: 10.1017/s026646660808050x
Availability: https://doi.org/10.1017/s026646660808050x; https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S026646660808050X
Rights: https://www.cambridge.org/core/terms
Accession Number: edsbas.3B334555
Database: BASE