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Econometrics F Test Dummy Variables Help

  1. Feb 25, 2012 #1
    Hello,

    I am fairly new to econometrics and have an assignment that I would like some clarification with.

    My regression involves regressing wage on various variables including dummy variables for white, black and asian. I have run separate regressions using subsamples for specific races so far.

    I am then asked to suggest a model that allows one to test the nul hypothesis of coefficient constancy across the three subsamples and carry out
    the test using the appropriate F statistic.

    I think this is the correct strategy, however I would greatly appreciate if someone could clarify this:

    1. Run the regression of y on all of the independent variables and 2 of the races (to avoid dummy variable trap)
    2. Run the regression of y on all of the indepedent variables apart from the races.

    Do an F test for joint restrictions using SSRr, SSRur or R^2 restricted and R^2 unrestricted.

    I would greatly appreciate if someone could let me know if this is the correct method or if I need to do some kind of chow test. Could both methods be acceptable?

    Thanks!

    All the best.
     
  2. jcsd
  3. Mar 13, 2012 #2
    Hi I'm facing exactly the same issue, did you get any reply/inspiration regarding your issue ?
     
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