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ONCE AGAIN: TESTING FOR REGIONAL HOMOGENEITY*
Authors:Peter M. Schulze
Abstract:ABSTRACT. Summarizing the foregoing discussions in this journal on testing for regional homogeneity the present note shows that in the model of Zellner's seemingly unrelated regressions one test statistic may be used not only to test for overall homogeneity but also to examine for individual coefficient homogeneity. This aim is achieved by varying the linear restrictions in the test statistic according to different problems. To illustrate these tests regional consumption functions for the 11 Bundesläder (States) of the Federal Republic of Germany are used.
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