On testing overidentifying restrictions in dynamic panel data models

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On Testing Overidentifying Restrictions in Dynamic Panel Data Models

The conventional Sargan (1958) / Hansen (1982) test of overidentifying restrictions and the Tilting Parameter test of Imbens, Spady and Johnson (1998) are compared in the context of the AR(1) dynamic panel data model using Monte Carlo experiments. Interestingly, the size properties of the former are found to be superior in this setting. Nevertheless, the Sargan / Hansen test is found to have no...

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ژورنال

عنوان ژورنال: Economics Letters

سال: 2002

ISSN: 0165-1765

DOI: 10.1016/s0165-1765(02)00130-1