Table 1 Test of linearity Threshold...

Table 1

Test of linearity

Threshold variable	Wald (LM) test		Fisher (LMF) test		Likelihood-ratio (LR) test
Threshold variable	Statistic	p-value	Statistic	p-value	Statistic	p-value
CREPRI	21.600	0.017	2.117	0.023	22.312	0.014
CREFIN	32.493	0.000	3.296	0.000	34.141	0.000
LIQUID	37.108	0.011	1.850	0.016	39.280	0.006

Threshold variable	Wald (LM) test		Fisher (LMF) test		Likelihood-ratio (LR) test
Threshold variable	Statistic	p-value	Statistic	p-value	Statistic	p-value
CREPRI	21.600	0.017	2.117	0.023	22.312	0.014
CREFIN	32.493	0.000	3.296	0.000	34.141	0.000
LIQUID	37.108	0.011	1.850	0.016	39.280	0.006

Note(s): This table reports the results of the tests of linearity for the models defined in Eqn. (6)–(8); H₀: linear model and H₁: nonlinear model (PSTR model with at least one transition function (r = 1)

Source(s): Author's computations

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