Table 5 Hypothesis tests

Log likelihood test for inclusion of regional variable

 Log likelihood H _{0No Regional effect}

−309.2177

−309.5058

−308.1408

−310.1935

 Log likelihood H _{1Regional effect}

−309.2149

−309.5038

−308.1404

−310.2888

 Log likelihood ratio statistics {2(LLH ₁ − LLH ₀)}

0.0056

0.0040

0.0008

0.0094

 Probability of Chi square

1.0000

1.0000

1.0000

1.0000

 Decision

Accept

Accept

Accept

Accept

Ramalho [37] generalised test for functional form mis-specification

 GGOFF

15.437***

16.015***

4.409**

7.826***

Davidson and MacKinnon [10] test for non-nested models

 P test

 H _1Logit

–

1.758

3.814**

8.125***

 H _1Probit

0.655

–

1.327

8.904***

 H _1Loglog

7.259***

4.972**

–

12.270***

 H _1Cloglog

1.679

3.947**

4.552**

–