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New Tests For Cointegration in Heterogeneous Panels

Research output: Working paper

Abstract

In this paper, the performances of panel data unit root tests are considered and various estimation methods under different properties of data are compared. It is shown that weighted symmetric estimation increases the power of the tests without adversely affecting the size, for most data properties and most panels of dimensions N and T. The presence of serial correlation and cross-sectional correlation does not reduce the power of the tests significantly.
Original languageEnglish
Publication statusPublished - 2006

Publication series

NameDiscussion Papers in Economics
PublisherUniversity of Colorado at Boulder, Department of Economics
No.Working Paper No. 06-09

Keywords

  • Panel Data Analysis
  • Time-Series Analysis

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