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Re: st: re: comparison two SUR models


From   Andres Susaeta <[email protected]>
To   [email protected]
Subject   Re: st: re: comparison two SUR models
Date   Sun, 3 Oct 2010 22:36:55 -0400

Dear Kit,
did you mean to run SUR without symmetry and use test, or pool data
and run OLS and test joint hypotheses?
Ignacio

On Sun, Oct 3, 2010 at 9:29 PM, Christopher Baum <[email protected]> wrote:
> <>
> I'm using seemingly unrelated regression (SUR) technique to estimate
> four models (equations). I have imposed symmetry in this model (some
> coefficients amog different equations are the same). I have also run
> the same 4 equations under the same approach without imposing
> symmetry. I want to compare both models to see which one is more
> appropriate.
>
> Instead of imposing the constraints and estimating the SUR system with symmetry, estimate the unrestricted system
> and use -test- to jointly specify all of the symmetry restrictions. That will give you an F test (with numerator df equal to the number of restrictions) that will allow you to consider the null of symmetry.
>
> There is a worked example of this in section 9.4 of IMEUS.
>
> Kit
>
> Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
>                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
>   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html
>
>
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