regression in levels vs. difference

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mrrox
Posts: 20
Joined: Thu Oct 27, 2011 3:09 pm

regression in levels vs. difference

Postby mrrox » Sat Mar 03, 2012 7:49 am

Hi,

I am running regression on Eviews, I do not know the difference between running a model in levels and differences. Can anyone shed some light on this please?
Thank you!

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: regression in levels vs. difference

Postby startz » Sat Mar 03, 2012 8:49 am

ls y c x
ls (y-y(-1)) c (x-x(-1))

mrrox
Posts: 20
Joined: Thu Oct 27, 2011 3:09 pm

Re: regression in levels vs. difference

Postby mrrox » Mon Mar 05, 2012 3:36 pm

Thanks starts,

I am asking how I could interpret the results. I do not know when I should use differenced and level variables.


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