Panel Data Unit Root Test And It's Application-Empirical Analysis Between Income And Consumption

Firstly,in the preface part,the paper elaborate the development process andmain research result of panel data analysis,including basic and the latest re-search result and the history of unit root's development and the advantageand disadvantage of panel data model. Secondly,in foundation described ba-sic theories model of the panel data analysis,the article introduce the panel dataestablishment model superiority,simultaneously also has pointed out the insuf-ficiency.Descripted all kind of forms of the panel data model. meanwhile,thepaper depict the brief of the unit root test theory of the panel data model andthe development history of the unit root test,especially the estimator of the max-imum likelihood methods. In the third part, unit root of estimator of maximumlikelihood methods with a deterministic trend is completely discussed.The fourth part is an empirical analysis:panel data model and causality be-tween disposable income and Consumption Expenditure annul data from 2000 to2005 in the PRC's province,city,and autonomous regions.The conclusion is valu-able in studying relation between CONS and INC through to model examinationand comparison.Finally has chosen fixed e?ects model and has carried on theeconomic analysis.