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New Tests for Cointegration in Heterogeneous Panels

Research output: Contribution to journalConference articlepeer-review

Abstract

This paper makes the following contributions to the existing literature on panel cointegration. First, two new tests based on the principle of weighted symmetric estimation are proposed for panel cointegration testing. Second, the asymptotic distributions of these new tests are examined, and these are shown to be well defined Weiner processes that are free of nuisance parameters. Third, the size and power properties of the proposed tests are studied with a Monte Carlo simulation, and their properties are found to be superior to those of the existing tests across a range of environments.
Original languageEnglish
Article numberPaper ID: 168
Pages (from-to)1-44
JournalAnnual Conference of Economists (ACE10) Papers
Publication statusPublished - 2010
EventACE 2010: 39th Annual Australian Conference of Economists - Sydney, Australia
Duration: 27 Sept 201029 Sept 2010

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Keywords

  • Time-Series Analysis
  • Panel Data Analysis

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