We use the quasi-likelihood ratio statistic to test the hypothesis that a power transformation is ineffective. The null is not standard because a parameter is unidentified, and we can also let the power coefficient be zero for the null.
Bibliographical noteFunding Information:
The authors are most grateful to the Editor, Eric Maskin, and a anonymous referee for their helpful comments. Also, JSC gratefully acknowledges the research support by the National Research Foundation of Korea Grant funded by the Korean Government ( KRF-2010-332-B00025 ).
All Science Journal Classification (ASJC) codes
- Economics and Econometrics