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- W2063706690 abstract "In an influential article, Hansen showed that covariate augmentation can lead to substantial power gains when compared to univariate tests. In this article, we ask if this result extends also to the panel data context? The answer turns out to be yes, which is maybe not that surprising. What is surprising, however, is the extent of the power gain, which is shown to more than outweigh the well-known power loss in the presence of incidental trends. That is, the covariates have an order effect on the neighborhood around unity for which local asymptotic power is negligible." @default.
- W2063706690 created "2016-06-24" @default.
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- W2063706690 date "2015-07-03" @default.
- W2063706690 modified "2023-09-24" @default.
- W2063706690 title "Rethinking the Univariate Approach to Panel Unit Root Testing: Using Covariates to Resolve the Incidental Trend Problem" @default.
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- W2063706690 doi "https://doi.org/10.1080/07350015.2014.962697" @default.
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