We examine properties of the LM test of overdispersion when the alternative is characterized by arbitrary correlated random effects. We first derive a result that a natural test to detect such arbitrary correlated random effects would take the form of the test of conditional moment restriction,...

This paper proposes a speci.cation test of the mixed logit models, by generalizing Haus- man and McFadden.s (1984) test. We generalize the test even further by considering a model developed by Berry, Levinsohn and Pakes (1995).

We develop a new specification test for the IV estimators adopting a particular second order approximation of Bekker (1994). The new specification test compares the difference of the forward (conventional) 2SLS estimator of the coefficient of the right hand side endogenous variable with the...

We develop a new specification test for IV estimators adopting a particular second order approximation of Bekker. The new specification test compares the difference of the forward (conventional) 2SLS estimator of the coefficient of the right-hand side endogenous variable with the reverse 2SLS...