Testing for Bivariate Spherical Symmetry

Abstract:     
An omnibus test for spherical symmetry in R2 is proposed, employing localized empirical likelihood. The thus obtained test statistic is distribution-free under the null hypothesis. The asymptotic null distribution is established and critical values for typical sample sizes, as well as the asymptotic ones, are presented. In a simulation study, the good performance of the test is demonstrated. Furthermore, a real data example is presented.

Number of Pages in PDF File: 19

Keywords: Asymptotic distribution, distribution-free, empirical likelihood, hypothesis test, spherical symmetry

JEL Classification: C12, C14

working papers series