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### CDtest (cross-sectional dependence test)

Posted: **Thu Jun 06, 2013 9:44 am**

by **EViews Esther**

This thread is about the

CDtest add-in that lets you test for the cross-sectional dependence in panel data.

[Update] (07/01/2014) Added a new warning message, "*The distribution of Freesâ€™ Q statistic requires T>3" for the Frees test

- Computation of the appropriate quantiles for the Frees' Q distribution would be available when the minimum number of periods T>3.

### Re: CDtest (cross-sectional dependence test)

Posted: **Sat Oct 05, 2013 9:41 am**

by **gftiryaki**

Whenever I run any of the CDtests, I get the following error message:

PANCOV is not a valid view for_PRESID06 in "DO _PRESID06.PANCOV(OUT=_A01) UCOR OBS"

What could be the problem?

### Re: CDtest (cross-sectional dependence test)

Posted: **Sat Oct 05, 2013 10:15 am**

by **EViews Gareth**

You need EV8.

### Re: CDtest (cross-sectional dependence test)

Posted: **Wed Oct 09, 2013 12:32 pm**

by **gftiryaki**

Ok, Thanks!

### Bug in CDtest addin?

Posted: **Thu Jun 19, 2014 10:53 pm**

by **tvonbrasch**

Hi,

Is there a bug in the CDtest addin?

in the following workfile, when I run the *cdtest *command on the equation object *dols*, 4 of the five test statistics show NA. Also, the test statistic Pearson LM Normal has the value 0.0000 yielding a probability of 1.0000. Can this be right? Is this a bug or is this right? Under what circumstances will thse test statistics typically yield NA?

Thomas

### Re: CDtest (cross-sectional dependence test)

Posted: **Wed Jul 02, 2014 11:21 am**

by **EViews Esther**

There were computational issues because the given panel data is severely unbalanced (especially, *T<4*). Please reinstall your cdtest addin, and then you will see the following table with a warning message*.

The table shows the NA* value for the Frees test because computation of the appropriate quantiles of the Frees' Q distribution would be available for the case with T>3 only (where T is the minimum number of periods).

### Re: CDtest (cross-sectional dependence test)

Posted: **Fri Jul 04, 2014 8:58 am**

by **tvonbrasch**

thank you for solving this issue!

### Re: CDtest (cross-sectional dependence test)

Posted: **Mon Feb 09, 2015 2:07 am**

by **amarnath1991**

Dear Sir,

I have been trying to perform CD test in eviews 7 using the add in from your forum. But I encounter an error **"PANCOV is not a valid view for_PRESID06 in "DO _PRESID06.PANCOV(OUT=_A01) UCOR OBS"**. There had been a previous post in the add ins forum where a person with Eviews 7 had got this problem resolved. Kindly let me know about how i can get over this problem.

### Re: CDtest (cross-sectional dependence test)

Posted: **Mon Feb 09, 2015 10:32 am**

by **EViews Esther**

Can you upload your workfile so that I can replicate the error?

### Re: CDtest (cross-sectional dependence test)

Posted: **Mon Feb 09, 2015 12:24 pm**

by **EViews Glenn**

As you have found, the add-in does not work with EViews 7. It requires the panel covariance computation which is an EViews 8 feature.

### Re: CDtest (cross-sectional dependence test)

Posted: **Tue Jan 19, 2021 8:05 am**

by **aawoad**

Hello

When I applied Residual Cross-Section Dependence Test on my unbalanced panel data (N=106, T=18), the finding for all types of tests are NA, could you please help?

Regards