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xtdhcoint

Overview

The xtdhcoint package implements the Durbin-Hausman panel cointegration tests of Westerlund (2008). The tests are robust to cross-sectional dependence through common factor extraction using principal components.

Installation

Install from CRAN:

install.packages("xtdhcoint")

Or install the development version from GitHub:

# install.packages("devtools")
devtools::install_github("muhammedalkhalaf/xtdhcoint")

Usage

library(xtdhcoint)

# Load example data
data(fisher_panel)

# Run Durbin-Hausman panel cointegration test
result <- xtdhcoint(inflation ~ interest, data = fisher_panel,
                    id = "country", time = "year")

# Print results
print(result)

# Detailed summary with decision table
summary(result)

Test Statistics

The package provides two test statistics:

Both statistics are right-tailed tests. Large positive values indicate evidence of cointegration.

Options

References

Westerlund, J. (2008). Panel cointegration tests of the Fisher effect. Journal of Applied Econometrics, 23(2), 193–233. doi:10.1002/jae.963

License

GPL-3

These binaries (installable software) and packages are in development.
They may not be fully stable and should be used with caution. We make no claims about them.
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