bng_panicnew

Purpose

Computes the pooled Pa, Pb, and PMSB tests in Bai & Ng (2010) using panel analysis of idiosyncratic and common components (PANIC) test of nonstationarity.

Format

{ Pa_pc, Pb_pc, PMSB_pc } = bng_panicNew(y, model[, kmax, ic_factors])
Parameters:
  • y (TxN matrix) – Panel data to be tested.
  • model (Scalar) –

    Model to be implemented.

    1 Constant.
    2 Constant and trend.
  • kmax (Scalar) – Maximum number of factors. Default = 5.
  • ic_factors (Scalar) –

    Information Criterion for optimal number of factors. Default = 1.

    1 PCp criterion.
    2 ICp criterion.
Returns:
  • Pa_pc (Scalar) – Pa statistic based on principal components with N(0,1).
  • Pb_pc (Scalar) – Pb statistic based on principal components with N(0,1).
  • PMSB_pc (Scalar) – PMSB statistic based on principal components with N(0,1).

Examples

library tspdlib;

// Load date file
y = loadd(getGAUSSHome() $+ "pkgs/tspdlib/examples/PDe.dat");

/*
** Default
** information criterion
** and maximum number of factors.
*/

// Model with constant and trend
model = 1;
{ Pa_pc, Pb_pc, PMSB_pc } = bng_panicNew(y, model);

Source

pd_panic.src