Table 5 Rationality Test

Instrument Set		Quadratic Loss (p = 2)			Linear Loss (p = 1)
Instrument Set		(1)	(2)	(3)	(4)	(5)	(6)
Indiana
Top	= 0.5	27.356^**	25.791^**	27.359^**	19.983^**	17.182^**	20.523
	γ =	3.876	3.860	3.884	4.762	3.953	4.904
Average	= 0.5	45.900^**	41.592^**	45.881^**	26.897^**	20.192^**	31.096
	γ =	3.657	3.283	3.698	4.892	3.436	5.579
Poor	= 0.5	54.962^**	57.061^**	58.194^**	35.490^**	30.641^**	36.058^**
	γ =	2.513	2.088	2.515	3.499	2.824	3.569
Transitional	= 0.5	0.288	0.108	3.845	0.571	0.682	0.775
	γ =	0.146	0.001	3.180	0.160	0.267	0.356
North
Top	= 0.5	37.314^**	34.827^**	38.672^**	22.985^**	24.173^**	24.209^**
	γ =	3.944	4.430	4.425	2.748	3.002	3.009
Average	= 0.5	79.392^**	72.915^**	86.023^**	20.925^**	20.005^**	21.076^**
	γ =	3.976	3.593	3.983	3.622	3.387	3.659
Poor	= 0.5	65.602^**	90.684^**	96.214^**	6.219	7.447	7.545
	γ =	2.144	2.188	2.360	1.511	2.272	2.331
Northeast
Top	= 0.5	5.350	5.297	6.055	8.980^**	7.468	10.284
	γ =	0.325	0.234	0.537	3.162	2.285	3.865
Average	= 0.5	20.096^**	20.103^**	20.101^**	21.154^**	18.296^**	22.026^**
	γ =	0.129	0.122	0.129	3.678	2.920	3.887
Poor	= 0.5	71.482^**	71.148^**	85.760^**	15.819^**	16.947^**	17.123^**
	γ =	0.107	0.002	0.927	0.841	1.189	1.242
West Central
Top	= 0.5	16.401^**	18.343^**	18.820^**	15.258^**	18.348^**	19.582^**
	γ =	4.449	4.676	4.720	3.316	4.306	4.654
Average	= 0.5	29.629^**	27.618^**	29.743^**	14.709^**	17.322^**	17.710^**
	γ =	3.995	3.861	4.008	3.121	3.996	4.116
Poor	= 0.5	18.107^**	16.513^**	19.118^**	35.640^**	31.757^**	36.823^**
	γ =	2.613	1.869	3.129	3.517	2.992	3.661
Central
Top	= 0.5	26.330^**	17.685^**	28.224^**	4.445	2.934	5.177
	γ =	4.945	4.276	4.982	3.137	1.815	3.763
Average	= 0.5	24.282^**	19.261^**	24.339^**	13.359^**	9.951^**	14.098^**
	γ =	4.555	3.688	4.651	5.327	3.690	5.639
Poor	= 0.5	20.584^**	24.305^**	24.099^**	18.546^**	14.054^**	21.779^**
	γ =	1.824	1.409	1.823	2.991	1.555	3.829
Southwest
Top	= 0.5	12.144^**	15.225^**	18.985^**	4.326	4.762	6.641
	γ =	1.210	1.661	2.464	0.256	0.553	1.778
Average	= 0.5	27.951^**	31.852^**	32.040^**	4.622	5.423	6.712
	γ =	2.188	2.588	2.913	0.459	0.995	1.821
Poor	= 0.5	25.395^**	23.149^**	27.029^**	14.172^**	13.465^**	14.388^**
	γ =	1.827	1.627	1.998	1.597	1.340	1.674
Southeast
Top	= 0.5	5.914	6.085	6.574	4.949	4.130	9.645
	γ =	0.028	0.012	1.042	0.680	0.121	3.527
Average	= 0.5	8.285	8.476^**	15.213^**	2.682	2.734	4.584
	γ =	0.114	0.009	2.195	0.012	0.052	1.450
Poor	= 0.5	9.895^**	9.248^**	11.275^**	12.275^**	10.063^**	12.707^**
	γ =	0.489	0.184	0.766	3.498	2.473	3.684

↵**,* Significance at the 1% and 5% levels, respectively.