Unit root testing
Posted: Wed Feb 20, 2013 6:32 am
Hi everyone,
I am testing for unit roots with a balanced panel data set. I will be using the IPS and Fisher ADF tests.
My question is what form to use: Level or first difference? I am worried about fixed effects, so maybe first difference is a better choice? Eviews7 btw.
I am testing for unit roots with a balanced panel data set. I will be using the IPS and Fisher ADF tests.
My question is what form to use: Level or first difference? I am worried about fixed effects, so maybe first difference is a better choice? Eviews7 btw.