Power of Tests for Nonlinear Transformation in Regression Analysis

B-Tier
Journal: Econometric Theory
Year: 1994
Volume: 10
Issue: 2
Pages: 357-371

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper compares the local power of tests for a nonlinear transformation of the dependent variable in a regression model against the alternative hypothesis of a linear transformation. It is shown that the local power of the Cox test is higher than those of the extended projection test of MacKinnon, White, and Davidson, and Bera and McAleer's test. The theoretical result is supported by a Monte-Carlo experiment in testing for a regression model with a logarithmically transformed dependent variable against a linear regression model.

Technical Details

RePEc Handle
repec:cup:etheor:v:10:y:1994:i:02:p:357-371_00
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25