Ramsey RESET Test

[Pandelis Andreou]

Sorry if this looks trivial, but what is the command to perform a Ramsey Regression Equation Specification Error test?

I have downloaded the reset package, after using Help, but I am not even sure if this is the right command.

[Carlo Lazzaro]

Pandelis:
the command to run what you're interested in via the user-written programme -reset- (net describe reset, from(http://fmwww.bc.edu/RePEc/bocode/r) is actually -reset-:

. sysuse auto.dta
(1978 Automobile Data)

. xi: reset price mpg i.rep78
i.rep78           _Irep78_1-5         (naturally coded; _Irep78_1 omitted)

==============================================================================
* Ordinary Least Squares (OLS)
==============================================================================
  price = mpg + _Irep78_2 + _Irep78_3 + _Irep78_4 + _Irep78_5
------------------------------------------------------------------------------
  Sample Size       =          69
  Wald Test         =     21.9467   |   P-Value > Chi2(5)       =      0.0005
  F-Test            =      4.3893   |   P-Value > F(5 , 63)     =      0.0017
 (Buse 1973) R2     =      0.2584   |   Raw Moments R2          =      0.8656
 (Buse 1973) R2 Adj =      0.1995   |   Raw Moments R2 Adj      =      0.8549
  Root MSE (Sigma)  =   2605.7822   |   Log Likelihood Function =   -637.4869
------------------------------------------------------------------------------
- R2h= 0.2584   R2h Adj= 0.1995  F-Test =    4.39 P-Value > F(5 , 63)  0.0017
- R2v= 0.2584   R2v Adj= 0.1995  F-Test =    4.39 P-Value > F(5 , 63)  0.0017
------------------------------------------------------------------------------
       price |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
         mpg |  -280.2615   61.57666    -4.55   0.000    -403.3126   -157.2103
   _Irep78_2 |   877.6347   2063.285     0.43   0.672     -3245.51     5000.78
   _Irep78_3 |   1425.657   1905.438     0.75   0.457    -2382.057    5233.371
   _Irep78_4 |   1693.841   1942.669     0.87   0.387    -2188.274    5575.956
   _Irep78_5 |   3131.982   2041.049     1.53   0.130    -946.7282    7210.693
       _cons |   10449.99   2251.041     4.64   0.000     5951.646    14948.34
------------------------------------------------------------------------------

==============================================================================
*** REgression Specification Error Tests (RESET)
==============================================================================
 Ho: Model is Specified  -  Ha: Model is Misspecified
------------------------------------------------------------------------------
* Ramsey Specification ResetF Test
- Ramsey RESETF1 Test: Y= X Yh2         =   6.029  P-Value > F(1,  62) 0.0169
- Ramsey RESETF2 Test: Y= X Yh2 Yh3     =   3.075  P-Value > F(2,  61) 0.0534
- Ramsey RESETF3 Test: Y= X Yh2 Yh3 Yh4 =   2.145  P-Value > F(3,  60) 0.1039
------------------------------------------------------------------------------
* DeBenedictis-Giles Specification ResetL Test
- Debenedictis-Giles ResetL1 Test       =   2.307  P-Value > F(2, 61)  0.1082
- Debenedictis-Giles ResetL2 Test       =   2.039  P-Value > F(4, 59)  0.1006
- Debenedictis-Giles ResetL3 Test       =   1.973  P-Value > F(6, 57)  0.0846
------------------------------------------------------------------------------
* DeBenedictis-Giles Specification ResetS Test
- Debenedictis-Giles ResetS1 Test       =   8.001  P-Value > F(2, 61)  0.0008
- Debenedictis-Giles ResetS2 Test       =   5.096  P-Value > F(4, 59)  0.0014
- Debenedictis-Giles ResetS3 Test       =   3.523  P-Value > F(6, 57)  0.0049
------------------------------------------------------------------------------
- White Functional Form Test: E2= X X2  =   6.238  P-Value > Chi2(1)   0.0442
------------------------------------------------------------------------------

.

As per FAQ, please note the recommendation (made for sound reasons) to declare the source of unofficial Stata commands. Thanks.

[Pandelis Andreou]

Thank you so much!