Difference and Second difference commands

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lnp3
Posts: 69
Joined: Sat Oct 01, 2011 7:28 pm

Difference and Second difference commands

Postby lnp3 » Mon Jul 29, 2013 2:29 pm

dear forum,

I am trying to estimate panel regression with first and second difference operators.

variable X1: rendered stationary at first difference level (let's say dependent variable)
variable X2: rendered stationary at second difference level (let's say independent variable)

here is my command in regression combo box. Is "second difference" command correct?

D(X1) C D((X2))

I really appreciate your help.

best regards,
lnp3

EViews Gareth
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Re: Difference and Second difference commands

Postby EViews Gareth » Mon Jul 29, 2013 3:33 pm

Before answering, what's your mathematical definition of a second difference?

lnp3
Posts: 69
Joined: Sat Oct 01, 2011 7:28 pm

Re: Difference and Second difference commands

Postby lnp3 » Mon Jul 29, 2013 3:54 pm

ΔXt= Xt-Xt-1 (first difference operator)

Δ(Δ Xt)= ΔXt- ΔXt-1 (second different operator)

I don't know how to write the command for second difference operator

first difference must be D(x). is it D ((x))?

thanks.

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13604
Joined: Tue Sep 16, 2008 5:38 pm

Re: Difference and Second difference commands

Postby EViews Gareth » Mon Jul 29, 2013 4:00 pm

D(X,2)

lnp3
Posts: 69
Joined: Sat Oct 01, 2011 7:28 pm

Re: Difference and Second difference commands

Postby lnp3 » Mon Jul 29, 2013 4:35 pm

thanks Eviews Gareth


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