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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 4 Results of diagnostic tests carried out.

From: Determinants of gross domestic savings in Uganda: an autoregressive distributed lag (ARDL) approach to cointegration

Problem Test carried out Null hypothesis Statistic Probability value Conclusion
Serial correlation Breusch–Godfrey LM Test (BG test) No serial correlation 1.950 (Chi2(1)) 0.1626 Fail to reject the null hypothesis
Heteroscedasticity Breusch–Pagan/Cook–Weisberg test Homoscedasticity 0.11 (Chi2(1)) 0.7443 Fail to reject the null hypothesis
Model specification Ramsey RESET test Model has no omitted variables 0.71 (F(3,15)) 0.5573 Fail to reject the null hypothesis
Normality Jarque–Bera test Residuals are normally distributed 0.3048 (Chi2(2)) 0. 8586 Fail to reject the null hypothesis
Multicollinearity VIF   4.11 (mean VIF)   The model does not suffer from multicollinearity
Parameter stability CUSUM6 and CUSUM squared Parameters are stable    The null hypothesis cannot be rejected at the 5% critical bound (as can be seen in Appendix A)