We consider exact unconditional procedures for testing independence of exchangeable binary data with equal-sized clusters. The approximate unconditional approach is recommended as a basic procedure. The exact unconditional procedure based on estimation followed by maximization is recommended for...

This paper considers a linear panel data model with reduced rank regressors and interactive fixed effects. The leading example is a factor model where some of the factors are observed, some others not. Invariance considerations yield a maximal invariant statistic whose density does not depend on...

This paper addresses the question of whether a conventional approach to cointegration is applicaple to the case where changes are allowed in the parameters for the short term dynamics. We reparametrise a vector autoregressive model such that the short-run parameters exhibiting changes at known...

This paper considers likelihood-based testing of the null hypothesis of m0 components against the alternative of m0+1 components in a finite mixture model. The number of components is an important parameter in the applications of finite mixture models. Still, testing the number of components has...

This paper provides a test of convexity of a regression function. This test is based on the least squares splines. The test statistic is shown to be asymptotically of size equal to the nominal level, while diverging to infinity if the convexity is misspecified. Therefore, the test is consistent...

In recent years, some authors have incorporated the penalized likelihood estimation into designing multivariate control charts under the premise that in practice typically only a small set of variables actually contributes to changes in the process. The advantage of the penalized likelihood...

Count data often exhibit overdispersion and/or require an adjustment for zero outcomes with respect to a Poisson model. Zero-modified Poisson (ZMP) and zeromodified generalized Poisson (ZMGP) regression models are useful classes of models for such data. In the literature so far only score tests...

This paper investigates the effects of inward FDI on per-capita income and growth of the US states since the mid-1970s. Using a Markov chain approach, it shows that both quantitative and qualitative characteristics of FDI affect per-capita income and growth. Employment-intensive FDI,...