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The results from our estimation provide evidence supporting the EKC hypothesis, and the estimated models are shown to be stable over the sample period.
In order to be able to validate the predictive ability of the estimated models, the data-set was split to an estimation part and a validation part.
The model parameters of the estimated models.
Table 4 summarises the important statistics of the estimated models.
The overall accuracy on holdout sample also constitutes diagnostic test for the estimated models.
Table 4 shows the simple correlations between these methods and the estimated models.
Thus, the estimated models for wheat and rice are proved appropriate.
This variable is significant at the 5% threshold in all the estimated models.
The tangibility variable is significant at the threshold of 1% in all of the estimated models.
Furthermore, the aforementioned statistics do not give evidence of misspecifications in the estimated models.
The explanatory and predictive power of the estimated models is relatively high.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com