Hypothesis Testing Instructions

RATS provides the following instructions for hypothesis testing

CDF	Computes the marginal significance level of a statistic
EXCLUDE	Tests exclusion restrictions
MRESTRICT	Tests general restrictions
RATIO	Tests in multiple equation systems
RESTRICT	Tests general linear restrictions
SUMMARIZE	Computes coefficient sums or functions of coefficients
TEST	Tests specific coefficient values

The following instructions can estimate restricted regressions:

MRESTRICT and RESTRICT

estimate regressions subject to general linear restrictions. First, estimate the unrestricted model, then use MRESTRICT or RESTRICT with the CREATE option to estimate the restricted model. For SUR estimation, first estimate with SUR, then use the RESTRICT or MRESTRICT with the REPLACE option, then do SUR(CREATE).

ENCODE

codes the restriction into the regressors. Use ENCODE first, then estimate the model using the UNRAVEL option (e.g. LINREG(UNRAVEL)).