Stationary

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mtt1991
Posts: 1
Joined: Fri May 24, 2013 8:37 pm

Stationary

Postby mtt1991 » Fri May 24, 2013 8:50 pm

I test Stationary for y and x1 x2 x3 ,using KPSS test the null hypothesis is : Variable is stationary (but i used intercept and trend)
when i plot graph for my data,it's increasing over time. and the results are accept h0(it stationary: but i used trend and intercept in test)

i cunfuse about trend stationary or stationary with myresult...
my senior at work tell me that my data is stationary so ican run OLS : y x1 x2 x3

but it has serial correlation problem he suggest me to use newey west standard error.

my question is
When i test stationary and use inercept and trend function, and the result is data is stationary (Reject H0 inADF,PP or Accept H0 in KPSS)
Is my data stationary? And i can use it to run regression

Please Help Me , and Thanks for all answer :)

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