Hello,(adsbygoogle = window.adsbygoogle || []).push({});

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.

**Physics Forums - The Fusion of Science and Community**

Dismiss Notice

Join Physics Forums Today!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Econometrics F Test Dummy Variables Help

Loading...

Similar Threads - Econometrics Test Dummy | Date |
---|---|

A F-test regression test, when and how? | Sep 17, 2017 |

A Testing Fit in Latent Class Analysis | Jul 17, 2017 |

A Separate tests vs Simultaneous tests | Jun 19, 2017 |

Book recomendation for Econometrics class | Sep 11, 2009 |

Econometrics: Controls and Difference-in-Differences | Apr 15, 2008 |

**Physics Forums - The Fusion of Science and Community**