Sentence examples for cross sectional dependence from inspiring English sources

Hence, we deployed Pesaran (2004) test of cross sectional dependence (CD) to all the four variables.

The later one is already established in the literature for its robustness against panel with heterogeneity and cross sectional dependence.

Table 1 contains the test results for Cross Sectional Dependence of different variables, and suggests that it is possible to reject the null hypothesis for all the variables at 1% level of significance.

As the size of the panel unit root test usually becomes distorted because of the presence of cross sectional dependence, it is crucial to diagnose this issue before estimating panel data models.

However, cross sectional dependence or cross sectional correlation of the variables is a fact that should be detected for the variables to decide which panel unit root test would be applied.

In order to test the above hypothesis, we applied four different tests namely Breuch – Pagan Lagrange Multiplier (LM) [24], Pesaran Cross Sectional Dependence (CD), Pesaran Scaled LM [25] and Baltagi, Feng and Kao Bias Corrected Sclaed LM [26].

We examine this issue by applying the cross-sectional dependence test by Pesaran [56].

Then we use second generation panel data unit root tests, which allow cross-sectional dependence.

Table 1 Cross-sectional dependence analysis   No trend specification Trend specification CPI.

Is there indeed a problem of cross-sectional dependence that justifies our use of these estimators?

However, the Pesaran (2004) test does not reject the possibility of cross-sectional dependence with the AMG estimator models.