Dear all,
I am using Stata 14.1 to analyze balanced panel dataset of 11 countries over period 2002-2014 (143 observations). As a first step, I want to check for stationarity of the series, in this example stationarity of social protection expenditures-to-GDP ratio. However, problem is that LLC and IPS tests give different results, but in the way that more restrictive LLC indicates stationarity, while IPS non-stationarity.
Code:
xtunitroot llc ln_socpexp, trend demean
p-value = 0,000 Code:
xtunitroot llc ln_socpexp, trend demean lags(1)
p-value = 0,000
Code:
xtunitroot ips ln_socpexp, trend demean
p-value = 0,34 Code:
xtunitroot ips ln_socpexp, trend demean lags(1)
p-value = 0,69
How should I interpret those results?
Thanks in advance
Mateo
I am using Stata 14.1 to analyze balanced panel dataset of 11 countries over period 2002-2014 (143 observations). As a first step, I want to check for stationarity of the series, in this example stationarity of social protection expenditures-to-GDP ratio. However, problem is that LLC and IPS tests give different results, but in the way that more restrictive LLC indicates stationarity, while IPS non-stationarity.
Code:
xtunitroot llc ln_socpexp, trend demean
p-value = 0,000 Code:
xtunitroot llc ln_socpexp, trend demean lags(1)
p-value = 0,000
Code:
xtunitroot ips ln_socpexp, trend demean
p-value = 0,34 Code:
xtunitroot ips ln_socpexp, trend demean lags(1)
p-value = 0,69
How should I interpret those results?
Thanks in advance
Mateo