panel data set (the ECHP) to appraise wage flexibility. Whereas typical estimation concentrates solely on the relationship …

In this paper we suggest panel data unit root tests which allow for structural breaks in the individual effects or … linear trends of panel data models. This is done under the assumption that the disturbance terms of the panel are …

their individual effects and/or incidental trends of the AR(1) panel data model is studied. These tests correct the least … squares estimator of the autoregressive coeffcient of this panel data model for its inconsistency due to the individual … considered ?fixed-T tests have local power which tends to unity fast only if the panel data model includes individual effects …

examined by deriving their asymptotic local power functions. This is done for dynamic panel data models allowing for individual … positive serial correlation of the error terms. For the panel data model with incidental trends, the paper shows that LS based …