Page 1 of 1
Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 9:49 am
by abdurrub
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.
Re: Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 11:17 am
by EViews Glenn
How many periods do you have in your panel?
Re: Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 11:25 am
by abdurrub
60 periods.
189 countries from 1950 to 2010.
Thanks for the prompt reply though
Re: Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 1:04 pm
by EViews Glenn
Any chance you can post your workfile?
Re: Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 1:21 pm
by abdurrub
Workfile is attached.
Democracy is the 'Dem' series. Thanks for your help.
Re: Cross Sections Dropped in Unit Root Test
Posted: Tue Jul 16, 2013 2:56 pm
by EViews Gareth
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).
Re: Cross Sections Dropped in Unit Root Test
Posted: Wed Jul 17, 2013 2:09 am
by abdurrub
Thank you Gareth !!
So does it mean the test stays valid for the available data?
Re: Cross Sections Dropped in Unit Root Test
Posted: Wed Sep 12, 2018 1:52 pm
by Lalan_dk
Hi, i want to ask,
What is the minimum period in panel data to test for unit root?