In this paper, a combined cross-section and time-series econometric analysis of Spanish regional growth is presented. This analysis operates with a database where the number of cross-sectional units is small for a typical panel of data, while the time dimension is clearly dominant. First, using recent techniques in the econometric analysis of panel data (both panel unit root and panel co-integr...

This article proposes a simple estimator that is consistent for the fraction of a panel that has an autoregressive unit root. Given such an estimate, θ̂ , we can test the null hypothesis that θ = θ0 for any value of θ0 ∈ (0,1]. The test is asymptotically standard normal and is valid whether or not the panel is crosssectionally correlated. The main insight is that in a panel in which some units a...

In this paper, we consider and examine the performance of two-step LM unit root tests with trend-breaks. In the first step, we jointly test for the existence and location of breaks using a maximum F-test. In the second step, we utilize the identified breaks and test for a unit root. A transformation procedure is adopted so that the tests with trend-breaks are invariant to nuisance parameters. W...

Recently, considerable emphasis has been placed on the problems arising out of cross-sectional dependence in panel unit root tests. This paper adopts the factor based cross-sectional dependence paradigm of Bai and Ng (2004) but suggests alternative factor extraction methods. Some theoretical results for these methods are provided. Further, a detailed Monte Carlo study of these methods for multi...

the increase of healthcare costs improved as a rule the health of the population. sometimes the positive effects of this expense are shaded off. on one hand, this expense improves the offer of the medical care. other influential factors on the health of population, we quote as example the training, the lifestyle, the hygiene and the distribution of income. on the other hand the increase of thes...

In this article, the relationship between energy consumption and economic growth is examined from the viewpoint of China’s industrial sectors. Panel data from 37 industrial sectors in China covering the period from 1998 to 2010 was used in this study. Not only first generation panel unit root tests and panel cointegration tests, but also second generation tests that account for dependence betwe...

China has witnessed a fast economic growth in the recent two decades. However, the heavy energy exploitation seems to show a negative relation to regional economic growth. Thus, the issue is whether the energy production is a curse or blessing for the regional economic growth in China. The present study deploys a comprehensive approach to rigorously prove the validity of a proposed panel data m...

The present study is aimed to examine the validity of purchasing power parity hypothesis for 28 OECD countries over 1960q1-2021q4 period. To reach this goal, we apply three methods evaluate whether real exchange rates are stationary: traditional unit root tests in time series, panel tests, and nonlinear based on OLS GLS detrending. findings suggest that does not hold even if assessment consider...