re: st: unit root test in panel data

[Christopher Baum <kit.baum@bc.edu>]

<>
It would be great if some one can suggest what to do if there is an unit root present in panel data? I was reading the literature and it appeared that one has to estimate dynamic panel data models. Also what if unit root is not present? Any suggestion is highly appreciated. 


try -findit panel unit root-

There is no obvious reason why a DPD model would be needed here. If N>>T you might choose to use one, but that depends on your positing some
sort of partial adjustment mechanism for the dependent variable.

Kit


Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                             An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
  An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html


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