Economics, Econometrics and Finance
4 years ago

New unit root tests show promise for accurate panel data analysis.

Journal of Econometrics
Testing for a unit root in panels with dynamic factors
Hyungsik Roger Moon, Benoît Perron

Paper Summary

Related papers

Decision Sciences
2 years ago

Common misconceptions debunked: Null hypothesis tests vs. confidence intervals

Evidence Synthesis
Statistical Computing
Clinical Trials
2 views
Decision Sciences
2 years ago

Revolutionizing Null Hypothesis Testing: The Rise of Wise Use

Evidence Synthesis
Clinical Trials
Quality of Life
1 view
Theme background image
Arts and Humanities
2 years ago

Precision of Null Hypothesis Tests Revolutionizes Data Analysis Accuracy

Mechanistic Explanation
Evidence Synthesis
Clinical Trials

The article explores ways to test for a unit root in large datasets with correlated units. By considering common factors, the researchers developed tests that are powerful when there are no trends present. However, these tests lose their power when trends need to be removed. Through simulations, they demonstrated the performance of these new tests in real-world scenarios.