Dear scholars, I would like to ask some questions regarding panel data analysis. Currently, I am using panel data of seven cross sections and time series of 33 years. My question is that can I employ xtdcce2? As I read some literature, Dynamic Common Correlate Effect (DCCE) is applicable for large T and N, others suggest that for N25, KAO and Pedroni co-intergartion are applicable. Still, some use it for the same case. Thus, let you suggest me appropriate model that you know from your experience. Thanks in advance.
The CCE estimator usually requires large T. N is not that large, but you can try. I would look at papers written especially by Pesaran and Pesaran and Chudik.
Matteo Fragetta thank you for your help. Let me read what you recommended.
As a general trend, in my opinion, the number of units studied should be less than the time period for reviewing the data of the movement board.
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