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CPS1461 Michal P. et. al
normalized test statistic allows us to omit the variance estimation and the
bootstrap technique overcomes the estimation of the correlation structure.
Hence, neither nuisance nor smoothing parameters are present in the whole
testing process, which makes it very simple for practical use. Moreover, the
whole stochastic theory behind requires relatively simple assumptions, which
are not too restrictive. The whole setup can be also modified by considering a
large panel size accounting also for situations with T tending to infinity.
Consequently, the whole theory would lead to convergences to functionals of
Gaussian processes with a covariance structure derived in a similar fashion as
for fixed and small T.

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