Cd Pesaran test on panel

I am trying to do the CD Pesaran Test on some panel data on Italian Provinces. For each unit I have 22 years, each one splitted in quarters (so 92 observation for each unit).

The variable "lag_lingua" has the same value for each quarters and years for one province, but it chagnes among provinces.

This is the code that I use:
AA<-pdata.frame(A, index = c("id","time"))

But I have this result:

Pesaran CD test for cross-sectional dependence in panels

data: AA$lag_lingua
z = NA, p-value = NA
alternative hypothesis: cross-sectional dependence

Warning message:
In cor(wideres, use = "pairwise.complete.obs") :

  • la deviazione standard è zero*

I can imagine that this is due to the fact that the variable changes only between units and not "inside" them, but how can I solve this problem and test for CD?

Thanks a lot! :slight_smile:

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