
doi: 10.2307/1912331
We propose a large sample Wald test for sets of equality and inequality constraints on the parameters of a model. The null or the alternative hypothesis may be subject to inequality constraints. The computation of the test statistic is relatively simple. As it is difficult in the presence of inequality constraints to derive the (asymptotic) distribution of the test statistic, we give bounds for the critical value (under the null hypothesis). When these bounds are sufficient, the test can be straightforwardly applied. In Section 2, we show how the Wald test applies to sets of equality and inequality restrictions, and we present the large sample distribution of the test under the null hypothesis. Upper and lower bound critical values for the joint test of equality and inequality restrictions are given in Section 3. Section 4 contains some concluding remarks. In the Appendix, we derive the large sample distribution of the test statistic under the null hypothesis.
large sample distribution of the test statistic, Asymptotic properties of parametric tests, critical value, bounds, Hypothesis testing in multivariate analysis, Applications of statistics to economics, large sample Wald test, equality and inequality constraints
large sample distribution of the test statistic, Asymptotic properties of parametric tests, critical value, bounds, Hypothesis testing in multivariate analysis, Applications of statistics to economics, large sample Wald test, equality and inequality constraints
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