Description Usage Arguments Details Value Author(s) References See Also Examples

`frmhet.reset`

is used to test the specification of fractional regression models estimated by GMMx or LINx.

1 | ```
frmhet.reset(object, lastpower.vec = 3, version = "Wald", table = T, ...)
``` |

`object` |
an object containing the results of an |

`lastpower.vec` |
a numeric vector containing the maximum powers of the linear predictors to be used in RESET tests. |

`version` |
a vector containing the test versions to use. Available options: |

`table` |
a logical value indicating whether a summary table with the test results should be printed. |

`...` |
Arguments to pass to nlminb, which is used to estimate the model under the alternative hypothesis
when |

`frmhet.reset`

applies the RESET test statistic to fractional regression
models estimated via `frmhet`

using the options `GMMx`

or `LINx`

.
`frmhet.reset`

may be used to test simultaneously the validity of the link
specification and the transformation applied to the response variable by each
estimator. It is taken into account the option that was chosen for computing
standard errors in the model under evaluation. See Ramalho and Ramalho and
Ramalho (2016) for details.

`frm.reset`

returns a named vector with the test results.

Joaquim J.S. Ramalho <jsr@uevora.pt>

Ramalho, E.A. and J.J.S. Ramalho (2016), "Moment-based estimation of nonlinear
regression models with boundary outcomes and endogeneity, with applications to
nonnegative and fractional responses", *Econometric Reviews*, forthcoming
(DOI: 10.1080/07474938.2014.976531).

`frmhet`

, for fitting fractional regression models under unobserved heterogeneity.

`frmhet.pe`

, for computing partial effects.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 | ```
N <- 250
u <- rnorm(N)
X <- cbind(rnorm(N),rnorm(N))
dimnames(X)[[2]] <- c("X1","X2")
Z <- cbind(rnorm(N),rnorm(N),rnorm(N))
dimnames(Z)[[2]] <- c("Z1","Z2","Z3")
y <- exp(X[,1]+X[,2]+u)/(1+exp(X[,1]+X[,2]+u))
res <- frmhet(y,X,type="GMMx",table=FALSE)
#LM and Wald versions of the RESET test, based on 1 or 2 fitted powers of xb
frmhet.reset(res,2:3,c("Wald","LM"))
## See the website http://evunix.uevora.pt/~jsr/FRM.htm for more examples.
``` |

```
*** RESET test ***
Fractional logit regression model
H0: Estimator: GMMx
Version Statistic p-value
LM(2) 2.016 0.156
Wald(2) 1.985 0.159
LM(3) 2.743 0.254
Wald(3) 1.934 0.380
```

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