Table III Pesaran’s (2004) cross-section... | Emerald Publishing

Table III

Pesaran’s (2004) cross-section dependence test

	Pesaran CD satatistics	Average correlation coefficient	Absolute correlation coefficient
Primary balance	6.695	0.102	0.273
Public debt	6.019	0.096	0.554
YVAR	10.121	0.154	0.257
GVAR	2.517	0.038	0.216
Government revenues	8.305	0.127	0.393
Government expenditure	5.622	0.086	0.347

	Pesaran CD satatistics	Average correlation coefficient	Absolute correlation coefficient
Primary balance	6.695	0.102	0.273
Public debt	6.019	0.096	0.554
YVAR	10.121	0.154	0.257
GVAR	2.517	0.038	0.216
Government revenues	8.305	0.127	0.393
Government expenditure	5.622	0.086	0.347

Note: Under the null hypothesis of cross-section independence CD ~ N(0, 1)