Displaying 1 result from an estimated 1 matches for "egnowmdzpzjtahy7".
2010 Jul 07
3
How do I test against a simple null that two regressions coefficients are equal?
Hi there,
I run two regressions:
y = a1 + b1 * x + e1
y = a2 + b2 * z + e2
I want to test against the null hypothesis: b1 = b2. How do I design the test?
I think I can add two equations together and divide both sides by 2:
y = 0.5*(a1+a2) + 0.5*b1 * x + 0.5*b2 * z + e3, where e3 = 0.5*(e1 + e2).
or just y = a3 + 0.5*b1 * x + 0.5*b2 * z + e3
If I run this new regression, I can test against