%0 Report
        %A Vijverberg, Wim P.
        %T Testing for IIA with the Hausman-McFadden Test
        %D 2011
        %8 2011 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 5826
        %U https://www.iza.org/index.php/publications/dp5826
        %X The Independence of Irrelevant Alternatives assumption inherent in multinomial logit models is most frequently tested with a Hausman-McFadden test. As is confirmed by many findings in the literature, this test sometimes produces negative outcomes, in contradiction of its asymptotic χ² distribution. This problem is caused by the use of an improper variance matrix and may lead to an invalid statistical inference even when the test value is positive. With a correct specification of the variance, the sampling distribution for small samples is indeed close to a χ² distribution.
        %K multinomial logit
%K IIA assumption
%K Hausman-McFadden test