Journal
ECONOMICS LETTERS
Volume 127, Issue -, Pages 51-53Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2014.12.029
Keywords
Non-nested models; Zero-inflation; Vuong test
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The Vuong test for non-nested models is being widely used as a test of zero-inflation. We show that such use is erroneous. We see that this stems from a misunderstanding of what is meant by the term non-nested model and suggest other approaches for determining zero-inflation (C) 2014 Elsevier B.V. All rights reserved.
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