Archive | 2019
Panel Unit Root Test
Abstract
Panel data with long time period have been used predominately in applied macroeconomic research like purchasing power parity, growth convergence, business cycle synchronisation and so on. In this chapter provides some theoretical issues and their application in testing for unit roots in panel data where the time dimension (T), and the cross section dimension (N) are relatively large. If N is large and T is small the analysis can proceed only under restrictive assumptions. In cases where N is small and T is relatively large standard time series techniques applied to systems of equations.