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Panel Data Unit Root testing: Overview

Anton Skrobotov

arXiv 13 Aug 2024 · Econometrics

arXiv:2408.08908 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This review discusses methods of testing for a panel unit root. Modern approaches to testing in cross-sectionally correlated panels are discussed, preceding the analysis with an analysis of independent panels. In addition, methods for testing in the case of non-linearity in the data (for example, in the case of structural breaks) are presented, as well as methods for testing in short panels, when the time dimension is small and finite. In conclusion, links to existing packages that allow implementing some of the described methods are provided.

Citation extraction

196
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542
in-text mentions
196
distinct cited
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13,410
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bai, J. and Ng, S (2004) A PANIC attack on unit roots and cointegration1.000274100%
2Pesaran, M.H (2007) A simple panel unit root test in the presence of cross section dependence1.000163100%
3Choi, I (2001) Unit Root Tests for Panel Data1.000144100%
4Maddala, G.S. and Wu, S (1999) A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test1.000125100%
5Bai, J. and Ng, S (2010) Panel unit root tests with cross-section dependence: a further investigation1.000103100%
6Breitung, J (2000) The Local Power of Some Unit Root Tests for Panel Data in B. Baltagi, T. B. Fomby, and R. C. Hill (eds.)1.000103100%
7Hadri, K (2000) Testing for Stationarity in Heterogeneous Panel Data1.00073100%
8Breitung, J. and Meyer, W (1994) Testing for Unit Roots in Panel Data: Are Wages on Different Bargaining Levels Cointegrated?1.00063100%
9Moon, H.R. and Perron, B. and Phillips, P.C.B (2007) Incidental Trends and the Power of Panel Unit Root Tests0.874122100%
10Hadri, K. and Rao, Y (2008) Panel Stationarity Test with Structural Breaks0.87482100%

Showing the top 10 of 196 scored citations.