Pesaran, M. Hashem; Smith, Ron P.; Yamagata, Takashi; … - CESifo - 2006
effects, cross-section dependence, and aggregation. Given data on N +1 countries, i, j = 0, 1, 2, ..., N, the standard … cross section dependence which is difficult to deal with particularly when N is large. In this paper we test for PPP … there is cross-sectional dependence. To deal with small sample problems and residual cross section dependence, we use a …