Cross Sections Dropped in Unit Root Test

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abdurrub
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Joined: Tue Jul 16, 2013 9:08 am

Cross Sections Dropped in Unit Root Test

Postby abdurrub » Tue Jul 16, 2013 9:49 am

I am working on a panel data and to proceed to Granger Causality test (between democracy and economic growth) I have to make sure that both are stationary. However, when I conduct the Unit Root test (ADF) for the Democracy data it drops 67 cross sections (3 for economic growth) out of the total of 189.

Could you please give me a hint about where I am going wrong.

I checked some of the cross sections have complete data but still dropped.

EViews Glenn
EViews Developer
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Re: Cross Sections Dropped in Unit Root Test

Postby EViews Glenn » Tue Jul 16, 2013 11:17 am

How many periods do you have in your panel?

abdurrub
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Re: Cross Sections Dropped in Unit Root Test

Postby abdurrub » Tue Jul 16, 2013 11:25 am

60 periods.
189 countries from 1950 to 2010.



Thanks for the prompt reply though :)

EViews Glenn
EViews Developer
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Re: Cross Sections Dropped in Unit Root Test

Postby EViews Glenn » Tue Jul 16, 2013 1:04 pm

Any chance you can post your workfile?

abdurrub
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Joined: Tue Jul 16, 2013 9:08 am

Re: Cross Sections Dropped in Unit Root Test

Postby abdurrub » Tue Jul 16, 2013 1:21 pm

Workfile is attached.

Democracy is the 'Dem' series. Thanks for your help.
Attachments
workfile2.wf1
(1.33 MiB) Downloaded 74 times

EViews Gareth
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Re: Cross Sections Dropped in Unit Root Test

Postby EViews Gareth » Tue Jul 16, 2013 2:56 pm

The Unit Root test cannot be carried out on cross-sections for which there is no data (i.e. all NAs) or no variation among the data (i.e. the values are identical for every time period in that cross-section).
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abdurrub
Posts: 14
Joined: Tue Jul 16, 2013 9:08 am

Re: Cross Sections Dropped in Unit Root Test

Postby abdurrub » Wed Jul 17, 2013 2:09 am

Thank you Gareth !!

So does it mean the test stays valid for the available data?

Lalan_dk
Posts: 17
Joined: Tue Apr 10, 2018 9:51 pm

Re: Cross Sections Dropped in Unit Root Test

Postby Lalan_dk » Wed Sep 12, 2018 1:52 pm

Hi, i want to ask,
What is the minimum period in panel data to test for unit root?


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