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Sample Stratification with Non-nested Alternatives: Theory and a Hedonic Example

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  • Goodman, Allen C
  • Dubin, Robin A

Abstract

Econometric analysis often addresses model misspecification due to the improper pooling of observations. One major problem in testing for improper pooling is the requirement that alternative stratifications be obtained from others through sets of restrictions (i.e., that they be nested stratifications), thus eliminating a large class of alternative non-nested stratifications. We propose that non-nested tests can be used to compare non-nested stratifications. We formally define the econometric problem, and show the applicability of the J, JA, Cox and non-nested F tests. We then use the four tests to compare spatial stratifications in a model of a house price determination. Copyright 1990 by MIT Press.

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  • Goodman, Allen C & Dubin, Robin A, 1990. "Sample Stratification with Non-nested Alternatives: Theory and a Hedonic Example," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 168-173, February.
    • Handle: RePEc:tpr:restat:v:72:y:1990:i:1:p:168-73
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    Cited by:

    1. Clapp, John M. & Wang, Yazhen, 2006. "Defining neighborhood boundaries: Are census tracts obsolete?," Journal of Urban Economics, Elsevier, vol. 59(2), pages 259-284, March.
    2. Bourassa, Steven C. & Hoesli, Martin & Peng, Vincent S., 2003. "Do housing submarkets really matter?," Journal of Housing Economics, Elsevier, vol. 12(1), pages 12-28, March.
    3. Chang Cai & Sandy Dall’Erba, 2021. "On the evaluation of heterogeneous climate change impacts on US agriculture: does group membership matter?," Climatic Change, Springer, vol. 167(1), pages 1-23, July.
    4. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.
    5. Goodman, Allen C. & Thibodeau, Thomas G., 1998. "Housing Market Segmentation," Journal of Housing Economics, Elsevier, vol. 7(2), pages 121-143, June.

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