In my panel data (10-time units and 50 cross sections) I am using inflation as one of the control variable. When I am running Levin-Lin-Chu unit-root test the p-value I am getting is 1. It may be because the inflation will be different across time units and the same across cross-sections. How to report this?
If the p value is 1, something might be wrong with your estimation. Make sure you full fill all the assumption needed to conduct Levine unit root
Dear Sreekanth, a 1.000 p-value (for computational purposes) means that the null hypothesis of a unit root is not rejected. That is, panels contain unit roots. It might be helpful to look at possible "similarities" in the data variables sample you are using to, for instance, check for cross-sectional correlation or other statistical issues. From a macroeconomic perspective, inflation is a very particular variable in this kind of analysis. I use Stata for my work. This reference on unit root tests could be helpful.
https://www.stata.com/manuals/xtxtunitroot.pdf
Best.
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