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  • Failed ramesy RESET test

    Hi,

    Im fairly new to stata, i've just manually run a RESET test on my panel data and it failed. I understand that this is due to incorrect functional form of my linear model. Im not sure which variables in the model need to be changed. Im not sure if there is a way I can tell?

    Thanks

  • #2
    Oliver:
    welcome to this forum.
    Unfortunately, there is no way that Ramsey test can tell you what is the predictors and/or the interactions that you forgot to plug in the right hand-side of the regression equation.
    Kind regards,
    Carlo
    (Stata 18.0 SE)

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