If a variable is stationary with a linear trend, do I have to include a linear trend in estimatoin?
Posted: Wed Jun 17, 2020 10:31 am
Hello there,
I have multiple variables that are I(0) and I(1). Once I conduct unit root test with a linear trend, every variable is I(0), which lets me to fixed effects model. Does it mean in my FE model, I have to include a linear trend? Thanks for consideration.
I have multiple variables that are I(0) and I(1). Once I conduct unit root test with a linear trend, every variable is I(0), which lets me to fixed effects model. Does it mean in my FE model, I have to include a linear trend? Thanks for consideration.