We propose a specification test of a parametrically specified nonlinear model against a weakly specified alternative. We generalize a similar test procedure proposed by Delgado and Stengos (1990) to test the specification of a linear model. We estimate the alternative model by using K...

We propose a specification test of a parametrically specified model against a weakly specified alternative. The latter is estimated using K nonparametric nearest neighbors (K-NN) in the context of an artificial regression. We derived the asymptotic distribution under the null hypothesis and...

We propose a specification test of a parametrically specified nonlinear model against a weakly specified alternative. We generalize a similar test procedure proposed by Delgado and Stengos (1990) to test the specification of a linear model. We estimate the alternative model by using K...

This paper demonstrates empirically that the limited dependent variable technique for sample selectivity bias correction provides two very different estimates of the gap between union and non-union wages. Our findings, based on the Canadian Survey of Work History, suggest that selectivity...

We employ a sample of Ontario paid workers from the 1981 Survey of Work History to compute three alternate sets of wage function coefficient estimates for four groups: unionized and nonunionized private sector workers, and unionized and nonunionized public sector workers. The derived estimates...