On the power and interpretation of panel unit root tests * ̈

  title={On the power and interpretation of panel unit root tests * ̈},
  author={Sune Karlsson and Mickael Lothgren},
We demonstrate that panel unit root tests can have high power when a small fraction of the series is stationary and may lack power when a large fraction is stationary. The acceptance or rejection of the null is thus not sufficient evidence to conclude that all series have a unit root or that all are stationary.  2000 Elsevier Science S.A. All rights reserved. 

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