Wald test between estimated results of two regressions?

Econometrics questions and discussions
Aixia_Mei
Posts: 29
Joined: Wed Dec 03, 2014 7:16 pm

Wald test between estimated results of two regressions?

Unread post by Aixia_Mei »

Hi Tom,

I run the same program with pre-event and post-event data separately, thus the estimated results of each coefficients are in two different files. My question is how can I apply Wald tests on the equality of pre- and post- estimated coefficients ?

Many thanks,
Aixia
TomDoan
Posts: 7814
Joined: Wed Nov 01, 2006 4:36 pm

Re: Wald test between estimated results of two regressions?

Unread post by TomDoan »

Assuming that you're willing to assume the two estimates are statistically independent, then the covariance matrix of the difference is the *sum* of the separately estimated covariance matrices. The calculation is very similar to that with a Hausman test except with the Hausman test the covariance matrix is the *difference* of the more efficient from the less efficient. (In the HT, the estimates are very highly correlated rather than being independent). The grnp173.rpf example shows how to do the calculation.

Regarding the fact that the two are based upon different data files, is there any reason you can't read in both data sets into one program? That's the simplest way to handle it. Otherwise, you would have to do a WRITE instruction from one program to send %BETA and the covariance matrix to a file, then a READ instruction in the other to read them in for the further calculation.
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