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Hypothesis Tests with pooled regression

asked 2013-04-17 22:39:20 +0000

geof gravatar image

I am trying to conduct a joint hypothesis test on parameters from a pooled regression (with PCSE and AR1 correction). One regression is restricted to have fewer variables (i.e. some Betas set = 0). The log likelihood function for the the restricted model is larger than the restricted model. The unrestricted model has 2 vectors of explanatory variables X1 and X2 and the restriced model just has vector X1. Shouldn't the log likelihood of the unrestricted model be larger? What am I missing here?

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answered 2013-08-08 05:07:18 +0000

An unrestricted model should have a higher LLF than the restricted model in this circumstance.

Can you post the model and data so we can look closer at this? It is likely a problem with the structure of the model or the data.

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Asked: 2013-04-17 22:39:20 +0000

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Last updated: Aug 08 '13