Cross Sectional Dependence

[Sidra Ilyas]

Hi Dear,

Can you please tell me if there is any requirement like N should be greater than T or T should be greater than N for cross sectional dependence test to work both in terms of pre and post estimation commands i.e. xtcd and xtcsd?

Thank you.

[Carlo Lazzaro]

Sidra:
as per related helpfile:
-search xtcd-: T>N;
-search xtcsd-: N>T.

[Sidra Ilyas]

Hi Carlo,

Thanks for your response. I read somewhere that xtcd is a pre estimation version of xtcsd which is a post estimation command. I also have read that xtcsd applies when N>T.
If xtcd is a pre estimation version of xtcsd, doesn't it mean that the required panel dimensions should be the same for both commands?

Just need to confirm this so that there is no confusion here.
Thanks again.

[Carlo Lazzaro]

Sidra:
from what I gathered form the respective help file:
-search xtcd-: T>N;
-search xtcsd-: N>T.