Dahlberg, Matz; Johansson, Eva; Tovmo, Per - 2002
This paper investigates the power properties of the Sargan test in the presence of measurement errors in dynamic panel … data models. The general conclusion from the Monte Carlo simulations is that the Sargan test, in many cases, leads the … in the employment and wage variables. It turned out that the Sargan test always accepted the misspecified models while we …