Griffith, Daniel A.; Chun, Yongwan - In: Econometrics : open access journal 4 (2016) 2, pp. 1-12
The Ramsey regression equation specification error test (RESET) furnishes a diagnostic for omitted variables in a … linear regression model specification (i.e., the null hypothesis is no omitted variables). Integer powers of fitted values … variables. Accordingly, a restricted regression model without eigenvectors should indicate an omitted variables problem, whereas …