Dear All. I have short panel data (N=162 t=6). Is it necessary to run unit root test for short panel data?
Hi,
Given that your t=6, there is no need to do a unit root test as unit root and cointegration are likely in a long panel where data span over a long period of time.
Kind regards
Thushara
See if you can find answer here in my thesis.:
http://prr.hec.gov.pk/jspui/handle/123456789//903
Moreover, there are different threshold for balanced and unbalanced panels. But T=6 is smaller than both thresholds.
no need to check stationarity...
Farhat Rasul S.C Thushara thank you for the answer. can you share reference
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