This paper deals with the problem of nonstationarity of regressors in binary choice model. The limit distribution of the ML-estimator is mixed normal, but restriction testing shall not be based on standard t-statistic. The results of the conducted Monte Carlo experiment demonstrate that the true size of the restriction test is far from the significance level. Therefore, the t-Student statistic should be modified and this paper proposes its modification. The results of the Monte Carlo investigation point to the superiority of the new statistic.

The aim of the paper is to analyze the political trajectory of changes in Saudi Arabia during the reign of Prince Muhammad Ibn Salman and the effects it has on the traditional and conservative values of the Saudi kingdom. The point of reference for the prince’s reform policy is the Vision 2030 project of changes announced in 2016, which aims to maintain a balance between modernization, including economic reforms, privatization and cultural initiatives, on the one hand, and Islam and political authoritarianism on the other. The structure of my article is built around the hypothesis that assumes that the reformist policy of Muhammad Ibn Salman is aimed at improving the economic and social conditions of Saudi Arabia in order to obtain social legitimization and loyalty and in the long term to ensure regime survival and its stability. I have posed three research questions which are as follows: 1) Can traditionalism and modernization be combined? 2) What is the impact of the authoritarian regime on modernization policy? 3) How has the relationship between the political authority and the Wahhabi establishment changed?