Diagnostic Tests

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Definition

Diagnostic Tests are Quantitative Tests performed after a model has been estimated, primarily in order to examine the adequacy of model specification.

Usage

The nature of diagnostic tests depends on the model being estimated.

Examples

Issues and Challenges

  • Variety of tests with convention rather than intrinsic superiority as to the optimal set of diagnostics
  • Empirical levels (also set by convention) for accepting test results

References