Checking the Rank Condition for CCE - Theory & Stata Illustration (Part 1)

Part 1 introduces a new method for testing the rank condition for the Common Correlated Effects estimator, designed to estimate heterogeneous panels. The method is put forward by De Vos, Everaert and Sarafidis (2024). Part 2 demonstrates how to implement this approach in Stata, using the package xtdcce2.