Testing for unit roots in three-dimensional heterogeneous panels in the presence of cross-sectional dependence

Monica Giulietti, Jesús Otero, Jeremy Smith

Research output: Contribution to journalResearch Articlepeer-review

3 Scopus citations

Abstract

The cross-sectionally augmented IPS (CIPS) test of Pesaran (2007) is extended for a three-dimensional (3D) panel. This 3D-CIPS test is correctly sized. However, a bootstrapped IPS test has better power performance than the 3D-CIPS, except for high levels of cross-sectional dependency.

Original languageEnglish (US)
Pages (from-to)188-192
Number of pages5
JournalEconomics Letters
Volume101
Issue number3
DOIs
StatePublished - Dec 2008

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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