data stationary
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data stationary
Hi all, i am new to eviews. and i am trying to detrend UK CPI data. it is the pvalue in adf test is smaller than 0.05 and reject the null there is a unit root at Level- trend and intercept test. but after I've generate detrend residual series. i can still see there's trend in residual series. how do i fully remove the trend?
Re: data stationary
the detrended residual series seems to have a trend.
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startz
- Non-normality and collinearity are NOT problems!
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- Joined: Wed Sep 17, 2008 2:25 pm
Re: data stationary
I'm not sure why you want to detrend the series, but you could try regressing on both a trend and a trend squared,.
Re: data stationary
Thank you Startz. I am trying to remove the trend because the Cpi data has an upward slopping trend. correct me if i am wrong.....from what i learned in class that is non stationary data so we have to make to stationary before estimate equation?
Even i did trend and trend squared, residual series still doesn't look random.
Even i did trend and trend squared, residual series still doesn't look random.
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- eviews_cpi.png (16.39 KiB) Viewed 8162 times
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startz
- Non-normality and collinearity are NOT problems!
- Posts: 3798
- Joined: Wed Sep 17, 2008 2:25 pm
Re: data stationary
If data has a unit root, then it can be problematic in a regression. Data which is trend stationary is not generally a problem. So you shouldn't need to detrend at all.
Re: data stationary
Startz, i know this is too much to ask, but could you take a look of my workfile and point out which log series i should detrend or do anything to make them stationary please?
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- inflation forecast.wf1
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