Testing for serial correlation in hierarchical linear models

This paper proposes a simple hierarchical model and a testing strategy to identify intra-cluster correlations, in the form of nested random effects and serially correlated error components. We focus on intra-cluster serial correlation at different nested levels, a topic that has not been studied in...

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Autores principales: Alejo, Javier, Montes Rojas, Gabriel Victorio, Sosa Escudero, Walter
Formato: Articulo Preprint
Lenguaje:Inglés
Publicado: 2018
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/101815
https://ri.conicet.gov.ar/11336/87244
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Sumario:This paper proposes a simple hierarchical model and a testing strategy to identify intra-cluster correlations, in the form of nested random effects and serially correlated error components. We focus on intra-cluster serial correlation at different nested levels, a topic that has not been studied in the literature before. A Neyman's C(α) framework is used to derive LM-type tests that allow researchers to identify the appropriate level of clustering as well as the type of intra-group correlation. An extensive Monte Carlo exercise shows that the proposed tests perform well in finite samples and under non-Gaussian distributions.