Hello,
I employed fractional regression model proposed by Wooldridge and Papke to estimate the dependent variable (a proportional variable that computes remaining/whole) of my study. The dependent variable falls between 0 and 1 (including 1). I ran the regression using the fracreg command on stata. However, I would like to run Ramsey reset test for model specification errors, as Wooldridge reports the reset test value in his paper. When I entered the command "ovtest" and "linktest", Stata states the following:
. estat ovtest
estat ovtest not valid
r(321);
. linktest
not possible after fracreg
r(131);
How do I test for model specification after fracreg command? What other assumptions must be evaluated after estimating fractional regression. As such, in OLS regression, one would test if assumptions such as homoscedasticity, absence of autocorrelation and normality is violated. Similarly, what other tests should one evaluate after fractional regression?
Appreciate your advice.
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