When variables are integrated of order 2 ?
Posted: Tue Jan 05, 2021 4:52 am
If in a bivariate regression analysis, both the variables are non stationary at level form, however one is integrated of order 1 and another integrated of order 2. Which estimation method for OLS can be employed in the above case.
Thanking you in anticipation.
P:S. Although i have used other proxy variables for the variable which is integrated of order 2 but all in vain as all these proxy variables also turned to be integrated of order 2.
Thanking you in anticipation.
P:S. Although i have used other proxy variables for the variable which is integrated of order 2 but all in vain as all these proxy variables also turned to be integrated of order 2.