Question: You have a model with 64 observations: Yt = + Xt + ut, t = 1990, . . . , 2005. Suppose that you are

You have a model with 64 observations: Yt = + Xt + ut, t = 1990, . . . , 2005. Suppose that you are suspicious of a structural break in 1997. First, you run a regression with all data and get the SSR (sum of squared residuals) as 0.56, then you run two more regressions. One on a sub-sample of the data from 1990 to 1997 (SSR = 0.23), and another one from 1998 to 2005 (SSR = 0.17). Can you conclude that there is a structural break in this model?

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