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Double Length Regressions for Testing the Box-Cox Difference Transformation

Timothy Park

The Review of Economics and Statistics 1991

The Box-Cox difference transformation is used to determine the appropriate specification for estimation of hedge ratios and a new double length regression form of the Lagrange multiplier test is presented for the difference transformation. The Box-Cox difference transformation allows the testing of the first difference model and the returns model as special cases of the Box-Cox difference transformation. Copyright 1991 by MIT Press.

DOI
10.2307/2109704
Volume
73 (1)
Pages
181
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