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Functional form and spatial dependence in dynamic panels

✍ Scribed by Zhenlin Yang; Chenwei Li; Y.K. Tse


Book ID
116421288
Publisher
Elsevier Science
Year
2006
Tongue
English
Weight
158 KB
Volume
91
Category
Article
ISSN
0165-1765

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## Abstract This paper studies the performance of panel unit root tests when spatial effects are present that account for cross‐section correlation. Monte Carlo simulations show that there can be considerable size distortions in panel unit root tests when the true specification exhibits spatial err