This paper extends the cross sectionally augmented panel unit root test proposed byPesaran (2007) to the case of a multifactor error structure. The basic idea is to exploitinformation regarding the unobserved factors that are shared by other time series in additionto the variable under...

This note investigates the effects of the education level, product market rigidities andemployment protection legislation on growth. It exploits macro-panel data for OECDcountries...