A Test of Omitted Macroeconomic Variables in Marketing Time of Residential Housing

We propose a new approach to testing whether there are omitted macroeconomic variables in the duration models analyzing what affects marketing time of residential housing. Unlike previous approaches, which use the length of the data sets as the criterion for whether to consider macroeconomic effects and select ＂reasonable＂ macroeconomic variables when the data sets are ＂long,＂ our method provides clear criteria for whether there are enough macroeconomic variables and whether there is a need to add variables in the models. It also serves as a complementary tool to RESET.