Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • ADF test results are nonstationary with constant and trend term

    HI everyone, I have run the ADF unit root test for my variable "log_CO2" and the result shows that it is stationary with constant term at both lags (0 and 1) but it becomes nonstationary when I include the trend term with constant. the same is the result of Philips perron test. kindly help me to solve the problem.
    the results are given..
    Attached Files

  • #2
    It seems that the variable is trend stationary. To detrend, apply OLS regression on your variable with a constant and time as dependent variable. Take the residuals of the regression, they will be stationary at level.

    Comment


    • #3
      ok i will try this.. but it becomes nonstationary when i include the trend. thank you for your answer

      Comment


      • #4
        You have to remove the trend which is called detrending. .

        Comment


        • #5
          ok
          thanks for answering..

          Comment

          Working...
          X