Give Several Economic Examples of How to Test Various Joint $R \beta = r$

question 25

Essay

Give several economic examples of how to test various joint linear hypotheses using matrix notation. Include specifications of $R \beta = r$ where you test for (i) all coefficients other than the constant being zero, (ii) a subset of coefficients being zero, and (iii) equality of coefficients. Talk about the possible distributions involved in finding critical values for your hypotheses.

---

Definitions:

Oedipus Complex

A Freudian theory positing that a child experiences unconscious desires for their opposite-sex parent and jealousy and rivalry toward their same-sex parent.

Oral Fixation

A psychological condition first described by Freud, characterized by an obsession with engaging the mouth in activities such as eating, talking, or smoking.

Reaction Formation

A defense mechanism where unacceptable impulses are transformed into their opposite, often seen in exaggerated or compulsive behaviors.

Projective Test

A personality test, such as the Rorschach or TAT, that provides ambiguous images designed to trigger projection of one’s inner dynamics.