about OLS
Hello,
I have a time series of 30 observations and want to study the impact of capital adequacy on bank profitability.
I tested the stationary and found that some variables are stationary at I(0) and others are stationary at I(1)
I transformed the data by taking the first difference and then applied linear regression using the OLS method and reached economically acceptable results.
example:
reg d.y d.x1 d.x2
Is what I did statistically acceptable?
I have a time series of 30 observations and want to study the impact of capital adequacy on bank profitability.
I tested the stationary and found that some variables are stationary at I(0) and others are stationary at I(1)
I transformed the data by taking the first difference and then applied linear regression using the OLS method and reached economically acceptable results.
example:
reg d.y d.x1 d.x2
Is what I did statistically acceptable?
