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Estimation and testing for functional form and autocorrelation: A simultaneous approach
Journal article   Peer reviewed

Estimation and testing for functional form and autocorrelation: A simultaneous approach

N.E. Savin and Kenneth J. White
Journal of econometrics, Vol.8(1), pp.1-12
08/01/1978
DOI: 10.1016/0304-4076(78)90085-4

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Abstract

This paper generalizes the Box and Cox (1964) procedure for the case in which the disturbances follow a first-order autoregressive process. The Box and Cox autoregressive procedure is then used to simultaneously test for autocorrelation and functional form. With the aid of some illustrative examples it is shown that corrective procedures for either misspecification taken alone may be inappropriate.

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