A. Mcguirk et al., SYSTEM MISSPECIFICATION TESTING AND STRUCTURAL-CHANGE IN THE DEMAND FOR MEATS, Journal of agricultural and resource economics, 20(1), 1995, pp. 1-21
A misspecification testing strategy designed to ensure that the statis
tical assumptions underlying a system of equations are appropriate is
outlined. The system tests take into account information in, and inter
actions between, all equations in the system and can be used in a wide
variety of applications where systems of equations are estimated. The
system testing approach is demonstrated by modeling U.S. consumer dem
and for meats. The example illustrates how the approach can be used to
disentangle issues regarding structural change and other forms of mod
el misspecification.