This paper reports on simulation results for the Wald test for ∝1=∝2=0 in the regression model

[Please open the additional file (8526_math.png) to see the regression model]

for the case ĸ is known and for the case where ĸ has to be estimated using nonlinear least squares (NLS). This last situation is not standard, and we therefore provide critical values for further use. A power study shows that choosing inappropriate starting values for ĸ leads to a quick loss of power.

Econometric Institute Research Papers
Report / Econometric Institute, Erasmus University Rotterdam
Erasmus School of Economics

Franses, P. H., de Groot, B., & Legerstee, R. (2007). Testing for harmonic regressors (No. EI 2007-04). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from