This paper extends the cross sectionally augmented panel unit root test proposed by Pesaran (2007) to the case of a … the maximum number of factors, in contrast to other panel unit root tests based on principal components that require in … practice. -- Panel unit root tests ; cross section dependence ; multi-factor residual structure ; Fisher inflation parity …

This paper proposes a new simple panel unit-root test by extending the cross-sectionally augmented panel unit-root test … the validity of long-run purchasing power parity. The proposed test complements the panel unit-root tests with breaks …