Use the health expenditure data of Section 16.6. The model is a probit regression of DMED, an
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Use the health expenditure data of Section 16.6. The model is a probit regression of DMED, an indicator variable for positive health expenditures, against the 17 regressors listed in the second paragraph of Section 16.6. You should obtain the estimates given in the first column of Table 16.1. Consider joint test of the statistical significance of the self-rated health indicators HLTHG, HLTHF, and HLTHP at level 0.05 .
(a) Perform a Wald test.
(b) Perform a likelihood ratio test.
(c) Perform an auxiliary regression to implement an \(L M\) test. [This will require some additional coding.]
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Microeconometrics Methods And Applications
ISBN: 9780521848053
1st Edition
Authors: A.Colin Cameron, Pravin K. Trivedi
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