lagrange multiplier test
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2021 ◽  
Vol 13 (21) ◽  
pp. 12013
Author(s):  
Keqiang Dong ◽  
Liao Guo

COVID-19 has spread throughout the world since the virus was discovered in 2019. Thus, this study aimed to identify the global transmission trend of the COVID-19 from the perspective of the spatial correlation and spatial lag. The research used primary data collected of daily increases in the amount of COVID-19 in 14 countries, confirmed diagnosis, recovered numbers, and deaths. Findings of the Moran index showed that the propagation of infection was aggregated between 9 May and 21 May based on the composite spatial weight matrix. The results from the Lagrange multiplier test indicated the COVID-19 patients can infect others with a lag.


Author(s):  
Adegbite Tajudeen Adejare

Abstract This study gauges taxation's effect on transportation from 1981 to 2019 in Nigeria. This study further assesses the bearing of causality among Transportation, Corporate tax, Petroleum profit tax, Value added tax and Custom and Excise duties. Analytical tools such as VECM, Johanson Test for Cointegration, Vector Autoregression and granger causality Wald (GCW) test are adopted for analysis. Diagnosis tests such as the Lagrange-multiplier test, Jarque-Bera test and Eigenvalue stability condition are carried out to examine autocorrelation, stability and normality tests respectively. Outcomes divulge that corporate tax has a positive short-run and long-run influence on transportation. Petroleum profit tax, Value added tax and Custom and Excise duties also impact transportation positively and significantly both in the long run and short run as deduced from empirical analysis. This reveals that all the components of taxation observed influence transportation positively both in the long run and short run in Nigeria. Conclusively, taxation impacts transportation positively and significantly both in the short run and long run. This translates that taxation income has been utilized effectively to upsurge transportation in Nigeria. It predicts that transportation will perform excellently in terms of economic development and employment generation if taxable income is properly monitored and utilized effectively.


2021 ◽  
pp. 001316442110203
Author(s):  
Lucia Guastadisegni ◽  
Silvia Cagnone ◽  
Irini Moustaki ◽  
Vassilis Vasdekis

This article studies the Type I error, false positive rates, and power of four versions of the Lagrange multiplier test to detect measurement noninvariance in item response theory (IRT) models for binary data under model misspecification. The tests considered are the Lagrange multiplier test computed with the Hessian and cross-product approach, the generalized Lagrange multiplier test and the generalized jackknife score test. The two model misspecifications are those of local dependence among items and nonnormal distribution of the latent variable. The power of the tests is computed in two ways, empirically through Monte Carlo simulation methods and asymptotically, using the asymptotic distribution of each test under the alternative hypothesis. The performance of these tests is evaluated by means of a simulation study. The results highlight that, under mild model misspecification, all tests have good performance while, under strong model misspecification, the tests performance deteriorates, especially for false positive rates under local dependence and power for small sample size under misspecification of the latent variable distribution. In general, the Lagrange multiplier test computed with the Hessian approach and the generalized Lagrange multiplier test have better performance in terms of false positive rates while the Lagrange multiplier test computed with the cross-product approach has the highest power for small sample sizes. The asymptotic power turns out to be a good alternative to the classic empirical power because it is less time consuming. The Lagrange tests studied here have been also applied to a real data set.


2020 ◽  
Vol 12 (1) ◽  
pp. 13-19 ◽  
Author(s):  
José Gabriel Astaiza-Gómez

Applied research requires the usage of the proper statistics for hypothesis testing. Constrained optimization problems provide a framework that enables the researcher to build a statistic that fits his data and hypothesis at hand. In this paper I show some of the necessary conditions to obtain a Lagrange Multiplier test as well as some popular applications in order to highlight the usefulness of the test when the researcher must rely in asymptotic theory and to help the reader in the construction of a test in applied work.


Author(s):  
Abdulfattah Mohamed G Khalifa H ◽  
Riccardo Natoli ◽  
Segu Zuhair

Purpose – The purpose of this paper is to provide empirical insights on the impact of board and audit committee characteristics on the financial performance of United Arab Emirates (UAE) listed firms.Design/methodology/approach – A multiple regression panel model was employed for the period 2006 to 2015. The analysis incorporates Anderson Lagrange Multiplier test and Hausman test to determine if a fixed effects or random effects model should be employed.Findings – Our results demonstrated that board size and board meetings had a significant positive relationship with financial performance while there were also significant positive relationships between both audit committee composition and audit committee members’ education and firm financial performance.Research limitations/implications – The findings inform UAE firms about the benefits of employing directors with a more diverse skill set to enhance board effectiveness as well as having audit committee members hold a recognised qualification in finance or accounting to improve firm financial performance.Originality/value – Our study contributes to the CG literature by adding to the limited studies on CG in the UAE which help reduce the significant gap between foundation theories and practical applicability.


2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Hasepti Harizanto

This article aims to determine the effect of specific variables namely LLP, FG, BOPO, and ROA at Bank Indonesia during the study period (2011-2016). The number of samples in this study was 12 Islamic banks using purposive sampling techniques. This study uses panel data regression analysis, with some chow test model selection, Hausman test, Lagrange multiplier test, and hypothesis testing using a T-test to test the regression coefficients partially and the F-test to test the effect together at a significant level 5%. The results obtained in this study are Loan Loss Provision (LLP), Financing Growth (FG), Operational Costs (BOPO), have a positive and significant effect on NPF. While the Return on Assets (ROA) has a positive and not significant effect on NPF. But together the independent variables have an effect on NPF Islamic Banks in Indonesia.


2019 ◽  
Vol 8 (4) ◽  
pp. 451-461
Author(s):  
Khusnul Umi Fatimah ◽  
Tarno Tarno ◽  
Abdul Hoyyi

Adaptive Neuro Fuzzy Inference System (ANFIS) is a method that uses artificial neural networks to implement fuzzy inference systems. The optimum ANFIS model is influenced by the selection of inputs, number of membership and rules. In general, the selection of ANFIS input is based on Autoregressive (AR) unit as a result of ARIMA preprocessing. Thus it requires several assumptions. In this research, an alternative selection of ANFIS input based on Lagrange Multiplier Test (LM Test) is used to test hypothesis for the addition of one input. Preprocessing is conducted to obtain the value of partial autocorrelation against Zt. The input lag variable which has the highest partial autocorrelation is the first input ANFIS. The next input selection is selected based on LM test for adding one variable. To test the performance of LM Test, an empirical study of two groups of generated data and low quality rice prices is conducted as a case study. Generating data with stationary and non-stationary criteria has a good performance because it has very good forecasting ability with MAPE out sample for each characteristic are 5.6785% and 9.4547%. In the case study using LM Test, the selected input are and  with the number of membership 2. The chosen model has very good forecasting ability with MAPE outsampel 6.4018%. Keywords : ANFIS, ANFIS Input, LM-Test, Low Quality Rice Prices, Forecasting


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