Hi:
Well, according to Stata, yes, the model does suffer from omitted
variable (given that p < .05). However, the Ramsey test is not one of
omitted variables per se.
Stata should consider changing the documentation in that regard as what
they note is misleading (see help for -ivreset- which is rather clear
about this point).
See also: Wooldridge, J. M. (2002). Econometric analysis of cross
section and panel data. Cambridge, MA.: MIT Press.
HTH,
John
____________________________________________________
Prof. John Antonakis
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University of Lausanne
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On 18.09.2009 14:02, Laura Platchkov wrote:
> Dear all,
>
> I am sorry to ask such a basic question, but I always have a doubt
when interpreting the results of the ovtest:
>
> I the output of the ovtest says:
>
> "Raymsey test using the powers of the fitted value of the dependent
> Ho: model has no omiited variable
>
> F (3, 168) =3.43
> Prob > F = 0.0169"
>
> What should I conclude? Does the model suffers from ommitted
variables or not?
>
> Thanks,
>
> Laura
>
> *
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> * http://www.ats.ucla.edu/stat/stata/
*
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