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.
Cross Sections Dropped in Unit Root Test
Moderators: EViews Gareth, EViews Moderator
-
- EViews Developer
- Posts: 2672
- Joined: Wed Oct 15, 2008 9:17 am
Re: Cross Sections Dropped in Unit Root Test
How many periods do you have in your panel?
Re: Cross Sections Dropped in Unit Root Test
60 periods.
189 countries from 1950 to 2010.
Thanks for the prompt reply though
189 countries from 1950 to 2010.
Thanks for the prompt reply though
-
- EViews Developer
- Posts: 2672
- Joined: Wed Oct 15, 2008 9:17 am
Re: Cross Sections Dropped in Unit Root Test
Any chance you can post your workfile?
Re: Cross Sections Dropped in Unit Root Test
Workfile is attached.
Democracy is the 'Dem' series. Thanks for your help.
Democracy is the 'Dem' series. Thanks for your help.
- Attachments
-
- workfile2.wf1
- (1.33 MiB) Downloaded 308 times
-
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13318
- Joined: Tue Sep 16, 2008 5:38 pm
Re: Cross Sections Dropped in Unit Root Test
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).
Follow us on Twitter @IHSEViews
Re: Cross Sections Dropped in Unit Root Test
Thank you Gareth !!
So does it mean the test stays valid for the available data?
So does it mean the test stays valid for the available data?
Re: Cross Sections Dropped in Unit Root Test
Hi, i want to ask,
What is the minimum period in panel data to test for unit root?
What is the minimum period in panel data to test for unit root?
Who is online
Users browsing this forum: No registered users and 69 guests