Estimate a model with votea
[ad_1]
-
Estimate a model with voteA as the dependent variable and prtystrA , democA, log( expendA ), and log( expendB ) as independent variables. Obtain the OLS re-
siduals, u ˆ i , and regress these on all of the independent variables. Explain why you obtain R 2 5 0.
-
Now, compute the Breusch-Pagan test for heteroskedasticity. Use the Fstatistic version and report the p -value.
-
Compute the special case of the White test for heteroskedasticity, again using the
F statistic form. How strong is the evidence for heteroskedasticity now?
[ad_2]
Source link