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Latin American Economic Review

Table 1 Cross-sectional dependence analysis

From: The economic integration of Spain: a change in the inflation pattern

 

No trend specification

Trend specification

CPI. 50 provinces 1955.1–1978.6

CPI. 50 provinces 1978.7–2014.4

CPI. 50 provinces 1955.1–1978.6

CPI. 50 provinces 1978.7–2014.4

LM test

491.383a

2383.475a

488.076a

2390.468a

CD test

152.845a

338.290a

152.327a

338.767a

  1. The CD-statistic and the LM-statistic test for the null of cross-sectional independence. The CD-statistic is distributed as a two-tailed standard normal distribution and the LM-statistic as a \( \chi_{N(N - 1)/2}^{2} \) distribution
  2. aImplies rejection of the null hypothesis at the 1 % significance level
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