{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,2,7]],"date-time":"2026-02-07T07:47:53Z","timestamp":1770450473912,"version":"3.49.0"},"reference-count":28,"publisher":"Wiley","issue":"1","license":[{"start":{"date-parts":[[2017,8,7]],"date-time":"2017-08-07T00:00:00Z","timestamp":1502064000000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["J of Applied Econometrics"],"published-print":{"date-parts":[[2018,1]]},"abstract":"<jats:title>Summary<\/jats:title><jats:p>We provide a methodology for testing a polynomial model hypothesis by generalizing the approach and results of Baek, Cho, and Phillips (<jats:italic>Journal of Econometrics<\/jats:italic>, 2015,<jats:italic>187<\/jats:italic>, 376\u2013384; BCP), which test for neglected nonlinearity using power transforms of regressors against arbitrary nonlinearity. We use the BCP quasi\u2010likelihood ratio test and deal with the new multifold identification problem that arises under the null of the polynomial model. The approach leads to convenient asymptotic theory for inference, has omnibus power against general nonlinear alternatives, and allows estimation of an unknown polynomial degree in a model by way of sequential testing, a technique that is useful in the application of sieve approximations. Simulations show good performance in the sequential test procedure in both identifying and estimating unknown polynomial order. The approach, which can be used empirically to test for misspecification, is applied to a Mincer (<jats:italic>Journal of Political Economy<\/jats:italic>, 1958,<jats:italic>66<\/jats:italic>, 281\u2013302;<jats:italic>Schooling, Experience and Earnings<\/jats:italic>, Columbia University Press, 1974) equation using data from Card (in Christofides, Grant, and Swidinsky (Eds.),<jats:italic>Aspects of Labour Market Behaviour: Essays in Honour of John Vanderkamp<\/jats:italic>, University of Toronto Press, 1995, 201\u2010222) and Bierens and Ginther (<jats:italic>Empirical Economics<\/jats:italic>, 2001,<jats:italic>26<\/jats:italic>, 307\u2013324). The results confirm that the standard Mincer log earnings equation is readily shown to be misspecified. The applications consider different datasets and examine the impact of nonlinear effects of experience and schooling on earnings, allowing for flexibility in the respective polynomial representations.<\/jats:p>","DOI":"10.1002\/jae.2589","type":"journal-article","created":{"date-parts":[[2017,8,8]],"date-time":"2017-08-08T04:38:10Z","timestamp":1502167090000},"page":"141-159","source":"Crossref","is-referenced-by-count":13,"title":["Sequentially testing polynomial model hypotheses using power transforms of regressors"],"prefix":"10.1002","volume":"33","author":[{"given":"Jin Seo","family":"Cho","sequence":"first","affiliation":[{"name":"School of Economics Yonsei University Seoul Korea"},{"name":"Department of Economics Hong Kong University of Science and Technology Hong Kong"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Peter C. B.","family":"Phillips","sequence":"additional","affiliation":[{"name":"Department of Economics, Yale University New Haven, CT USA"},{"name":"Department of Economics, University of Auckland Aukland New Zealand"},{"name":"School of Economics Singapore Management University Singapore"},{"name":"Department of Economics, Social Science, University of Southampton Southampton UK"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"311","published-online":{"date-parts":[[2017,8,7]]},"reference":[{"key":"e_1_2_9_2_1","first-page":"267","volume-title":"Information theory and an extension of the maximum likelihood principle","author":"Akaike H.","year":"1973"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1109\/TAC.1974.1100705"},{"key":"e_1_2_9_4_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jeconom.2015.03.041"},{"key":"e_1_2_9_5_1","doi-asserted-by":"publisher","DOI":"10.2307\/2938323"},{"key":"e_1_2_9_6_1","doi-asserted-by":"publisher","DOI":"10.1007\/s001810000059"},{"key":"e_1_2_9_7_1","first-page":"201","volume-title":"Aspects of labour market behaviour: Essays in honour of John Vanderkamp","author":"Card D.","year":"1995"},{"key":"e_1_2_9_8_1","doi-asserted-by":"publisher","DOI":"10.1016\/S1573-4463(99)03011-4"},{"key":"e_1_2_9_9_1","first-page":"60","article-title":"Experience with the weighted bootstrap in testing for unobserved heterogeneity in exponential and Weibull duration models","volume":"22","author":"Cho J. 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