CORRECTION seminar 9

Unfortunately, I made an error in the handout for seminar 9 (my deepest apologies). I forgot to add the desired range in the dummy variable tests of structural breakdown in gamma! This leads to, as you will see in the revised handout, not rejecting the null hypothesis in one of the cases. We now get qualitatively the same outcome from the Chow test and the dummy test (which is great news).

Please print out and check the new handout on page 3 and 4, where the dummy tests have been updated.

Herman

PS: To all those (and there are quite a few) who still freak out when they see a Stata printout, you are most welcome to email me and set up a (brief) meeting where I can explain how to read a regression table. My email is herman.kruse@econ.uio.no

PPS: Please come in packs rather than singles (I have exams too).