LM Tests for Random Effects

We explore practical methods of carrying out Lagrange Multiplier tests for variance components in two models in which the derivatives needed for the test are identically zero at the restricted estimates, the random effects probit model and the stochastic frontier model. The techniques are illustra...

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Bibliographic Details
Main Authors: Greene, William, McKenzie
Format: Working Paper
Published: NYU Stern School of Business 2012
Subjects:
Online Access:http://web-docs.stern.nyu.edu/old_web/economics/docs/workingpapers/2012/Greene-LMTestsRandomEffects_Sept2012.pdf
http://hdl.handle.net/20.500.11937/42491
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author Greene, William
McKenzie
author_facet Greene, William
McKenzie
author_sort Greene, William
building Curtin Institutional Repository
collection Online Access
description We explore practical methods of carrying out Lagrange Multiplier tests for variance components in two models in which the derivatives needed for the test are identically zero at the restricted estimates, the random effects probit model and the stochastic frontier model. The techniques are illustrated with two applications.
first_indexed 2025-11-14T09:12:08Z
format Working Paper
id curtin-20.500.11937-42491
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:12:08Z
publishDate 2012
publisher NYU Stern School of Business
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repository_type Digital Repository
spelling curtin-20.500.11937-424912017-01-30T14:59:59Z LM Tests for Random Effects Greene, William McKenzie score test LM test random effects stochastic frontier We explore practical methods of carrying out Lagrange Multiplier tests for variance components in two models in which the derivatives needed for the test are identically zero at the restricted estimates, the random effects probit model and the stochastic frontier model. The techniques are illustrated with two applications. 2012 Working Paper http://hdl.handle.net/20.500.11937/42491 http://web-docs.stern.nyu.edu/old_web/economics/docs/workingpapers/2012/Greene-LMTestsRandomEffects_Sept2012.pdf NYU Stern School of Business restricted
spellingShingle score test
LM test
random effects
stochastic frontier
Greene, William
McKenzie
LM Tests for Random Effects
title LM Tests for Random Effects
title_full LM Tests for Random Effects
title_fullStr LM Tests for Random Effects
title_full_unstemmed LM Tests for Random Effects
title_short LM Tests for Random Effects
title_sort lm tests for random effects
topic score test
LM test
random effects
stochastic frontier
url http://web-docs.stern.nyu.edu/old_web/economics/docs/workingpapers/2012/Greene-LMTestsRandomEffects_Sept2012.pdf
http://hdl.handle.net/20.500.11937/42491