Stata Help

estat ovtest

The estat ovtest command runs the RESET (regression specification-error test) for omitted variables. The RESET tests the model to ensure that omitted variables are not causing model misspecification. For a slightly less brief over view of the theory, see this google book result.

The syntax is simply estat ovtest with the option of adding ,rhs which tells Stata to use the powers of the explanatory variables rather than the fitted values according to [R] regression postestimation.

Once more, insignificant p-values imply a model that passes the test. This does not mean you have found the best model, only that your model is adequate according to the RESET diagnostic. To learn more about Ramsey's RESET, you can read the original article by clicking here and downloading a pdf of the original article.