Table 7

Diagnostic tests

Diagnostic testsModel 1Model 2Model 3
Jarque-Bera test for normality2.9232(0.2380)3.7157(0.6265)2.2410(0.9231)
Breusch-Godfrey serial correlation LM test2.0151(0.6109)0.3091(0.3873)0.0384(0.6229)
Ramsey reset test1.1447(0.1262)1.2571(0.7619)7.3175(0.3012)
Heteroskedasticity test: Breusch-Pagan-Godfrey1.6101(0.6273)2.6127(0.2108)2.4307(0.1456)

Source(s): Authors’ computations

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