Holmes, Mark J.; Otero, Jesús; Panagiotidis, Theodore - Rimini Centre for Economic Analysis (RCEA) - 2010
In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross-sectional dependence. For...