We introduce non-nested hypotheses tests using indirect, simulation-based estimation procedures. We propose different test statistics and carefully examine the corresponding implicit null hypotheses. A notion of indirect encompassing comes up naturally, which may be compared to the usual encompassing conditions. Then we show how these methods extend standard specification and overidentification tests.

Keywords : indirect inference, instrumental model, non-nested hypotheses, indirect encompassing, specification test, overidentification test.

JEL : C5, C3.