Panel unit root tests in the presence of cross-sectional dependence: finite sample performance and an application

This paper examines the finite sample properties of three testing regimes for the null hypothesis of a panel unit root against stationary alternatives in the presence of cross-sectional correlation. The regimes of Bai and Ng (2004), Moon and Perron (2004) and Pesaran (2007) are assessed in the presence of multiple factors and also other non-standard situations. The behaviour of some information criteria used to determine the number of factors in a panel is examined and new information criteria with improved properties in small-N panels proposed. An application to the efficient markets hypothesis is also provided. The null hypothesis of a panel random walk is not rejected by any of the tests, supporting the efficient markets hypothesis in the financial services sector of the Australian Stock Exchange.

PANEL DATA UNIT ROOT TEST WITH FIXED TIME DIMENSION

The consideration of the limit theory in which T is fixed and N is allowed to go to infinity improves the finite-sample properties of the tests and avoids the imposition of the relative rates at which T and N go to infinity.

Design of hydraulic structures considering different sheetpile configurations and flow through canal banks

This research investigated seepage under hydraulic structures considering flow through the banks of the canal. A computer model, utilizing the finite element method, was used. Different configurations of sheetpile driven under the floor of the structure were studied. Results showed that the transverse extension of sheetpile, driven at the middle of the floor, into the banks of the canal had very little effect on seepage losses, uplift force, and on the exit gradient at the downstream end of the floor. Likewise, confining the downstream floor with sheetpile from three sides was not found effective. When the downstream floor was confined with sheetpile from all sides, this has significantly reduced the exit gradient. Furthermore, all the different configurations of the sheetpile had insignificant effect on seepage losses. The most effective configuration of the sheetpile was the case when two rows of sheetpiles were driven at the middle and at the downstream end of the floor, with the latter sheetpile extended few meters into the banks of the canal. This case has significantly reduced the exit gradient and caused only slight increase in the uplift force when compared to other sheetpile configurations. The present study suggests that two-dimensional analysis of seepage problems underestimates the exit gradient and uplift force on hydraulic structures.