Abstract
Abstract This paper introduces a class of rank statistics for use in testing econometric models for misspecification. These statistics are ideally suited to survey data since endogenous and exogenous variables in econometric models may, therefore, be considered exchangeable. Thus residuals from a wide class of models, e.g., linear regression, non-linear regression, simultaneous equations, etc., are also exchangeable. Since rank statistics are distribution-free when based on exchangeable data it follows the rank statistics based on these residuals are also distribution-free. Simulation studies in the linear regression case suggest that they have good power characteristics and are distributionally robust in comparison to the usual classical procedures.
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