Misleading Inferences from Panel Unit Root Tests: a Comment

B-Tier
Journal: Review of International Economics
Year: 2006
Volume: 14
Issue: 3
Pages: 508-511

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In their 2001 paper, Breuer, McNown, and Wallace argue that panel unit root tests are flawed in that the “all or nothing nature of these procedures may lead to serious misinterpretations of tests applied to mixed panels” (2001, p. 483). The authors propose an alternative test, the SURADF test, which allows for and estimates heterogeneous rates of convergence. We show that SURADF test results are highly sensitive to the selection of panel members. As such, application of the SURADF test seems to require a sound basis for panel member selection and a caveat that all results are panel‐specific.

Technical Details

RePEc Handle
repec:bla:reviec:v:14:y:2006:i:3:p:508-511
Journal Field
International
Author Count
3
Added to Database
2026-01-25