The behavior of exact tests for homogeneity (F and Hotelling T-super-2) is compared with size-adjusted LR tests in the linearized AIDS model with different approximating price indexes (Stone, Paasche, Laspeyres). The Monte Carlo evidence shows that test size distortions are sensitive to the...

In their model of induced unemployment and unemployment insurance benefits Grubel, Maki, and Sax (1975) break the collinearity between two subsets of regressors by replacing one subset with the residuals from the regression of that subset on the other. This note works out the statistical...

Using Canadian data (1965-86), the author confirms and extends Thomas M. Stoker's (1986) results on the rule of distributional effects in demand systems. The confirmation consists of evidence from the linear expenditure system model showing that distributional effects are statistically...

Chin and Kennedy (1987) have recently suggested a procedure that they claim can be used to infer the direction of the true model relative to two rejected nonnested hypotheses. This note argues that their procedure can be viewed as model discrimination after model testing has rejected two...