Panel Data - Identical Cross Section Values-UnitRoot test
Posted: Mon Feb 08, 2016 7:18 am
Hello, my first post here.
Using FE panel data, I am regressing economic growth on a set of variables for 149 countries, from 1996 to 2011. One of the regressors is the log of initial GDP per capita (1996), so for each cross section/country, there are 16 identical values.
Random numerical example:
Country Year GDP
Afghanistan 1996 400
Afghanistan 1997 400
...
Afghanistan 2011 400
and so on so forth.
When I try any unit root test for this variable, i get the ''insufficient number of observations encountered in Uroot ́ ́error.
Could this be a simple case of literally not enough observations (hard to believe, 2384 obs should be ok) or could it be a general specification problem?
Thank you in advance!
Using FE panel data, I am regressing economic growth on a set of variables for 149 countries, from 1996 to 2011. One of the regressors is the log of initial GDP per capita (1996), so for each cross section/country, there are 16 identical values.
Random numerical example:
Country Year GDP
Afghanistan 1996 400
Afghanistan 1997 400
...
Afghanistan 2011 400
and so on so forth.
When I try any unit root test for this variable, i get the ''insufficient number of observations encountered in Uroot ́ ́error.
Could this be a simple case of literally not enough observations (hard to believe, 2384 obs should be ok) or could it be a general specification problem?
Thank you in advance!