Scholarly Comments on Academic Economics

Econometric Errors in an Applied Economics Article

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Abstract

This comment points out some econometric errors contained in an Applied Economics article by Mavrommati and Papadopoulos (2005), to wit, the authors make an incorrect statement about the standard F-test; they claim erroneously that the Durbin-Watson test is irrelevant in panel data; they fail to test for serial correlation and random-walk errors; and they misuse the Durbin-Wu-Hausman test for the consistency of the fixed-effects estimator. Thus, their results are questionable. This comment aims to prevent novice researchers from repeating these errors, and to police standards at the journals.

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Volume (Issue)
Pages
107-112
Published
JEL classification
C12, C52
Keywords
F-test, Durbin-Watson, Durbin-Wu-Hausman, panel data
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