← Search

Serial Correlation and the Fixed Effects Model

Alok Bhargava; L. Franzini; W. Narendranathan

London School of Economics and Political Science

Review of Economic Studies 1982

This paper generalizes the Durbin-Watson type statistics to test the OLS residuals from the fixed effects model for serial independence. Also generalized are the tests proposed by Sargan and Bhargava for the hypothesis that the residuals form a random walk. A method for efficient estimation of the parameters is also developed. Finally, an earnings function is estimated using the Michigan Survey of Income Dynamics in order to illustrate the uses of the tests and the estimation procedures developed in this paper.

DOI
10.2307/2297285
Volume
49 (4)
Pages
533
Export
BibTeX
Sources
openalex crossref