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Regression Diagnostics and Specification Tests

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Book cover Econometrics

Part of the book series: Springer Texts in Business and Economics ((STBE))

Abstract

Sources of influential observations include: (i) improperly recorded data, (ii) observational errors in the data, (iii) misspecification and (iv) outlying data points that are legitimate and contain valuable information which improve the efficiency of the estimation. It is constructive to isolate extreme points and to determine the extent to which the parameter estimates depend upon these desirable data.

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Notes

  1. 1.

    This chapter is based on Belsley, Kuh andWelsch (1980), Johnston (1984), Maddala (1992) and Davidson and MacKinnon (1993). Additional references are the following:

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  • Footnote

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Authors and Affiliations

  1. Center for Policy Research Department of Economics, Syracuse University, Eggers Hall 426, 13244-1020, Syracuse, New York, USA

    Prof. Badi H. Baltagi

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  1. Prof. Badi H. Baltagi
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Correspondence to Badi H. Baltagi .

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Baltagi, B.H. (2011). Regression Diagnostics and Specification Tests. In: Econometrics. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-20059-5_8

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  • DOI: https://doi.org/10.1007/978-3-642-20059-5_8

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