I think that zero-row/length objects are useful when you want to model available observations in a given time frame and no observations are available for some securities. Apart from this, one could rule out them, like a division-by-zero error, but since they are currently legal objects, merge.xts should support them. Also because, given a zero-length x, it seems quite natural to set to NA x column(s) in merge(x,y, all=TRUE) and to output another zero-length xts, from merge(x,y, all=FALSE)

Another function that should be fixed for zero objects is names():

e <- xts(data.frame(p=numeric()), as.Date(character()))
names(e)
# NULL

The result should be "p".
Also, off topic a bit, but speaking of names:

(x <- xts(data.frame(p=1), as.Date(1)))
#            p
# 1970-01-02 1
 
(y <- xts(c(p=1), as.Date(1)))
#            [,1]
# 1970-01-02    1

could/should both name the column p.

Thanks for the feedback, @steven001.

There is no names.xts() method, so the names.zoo() method is being called. And it looks like xts behaves the same as zoo in this case.

require(xts)
x1 <- .xts(data.frame(a=1, b=1), 1)
z1 <- as.zoo(x1)
x0 <- .xts(data.frame(a=numeric(), b=numeric()), numeric())
z0 <- as.zoo(x0)
names(x1) # [1] "a" "b"
names(z1) # [1] "a" "b"
names(x0) # NULL
names(z0) # NULL

In your second example, c(p=1) is a named vector; and vectors are column-wise in R, so the names would be row names. That means your y object should not have column names.