Herwartz, Helmut; Siedenburg, Florian - In: Empirical Economics 44 (2013) 2, pp. 455-467
In this article, convergence of unit labor cost (ULC) inflation within the Euro area is tested by means of panel unit root tests. To account for the small cross-sectional dimension, cross-sectional dependence of model innovations and time varying volatility, wild bootstrap critical values are...