structural break

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Jone
Posts: 8
Joined: Fri Jul 18, 2014 6:33 pm

structural break

Postby Jone » Tue Jul 29, 2014 2:38 pm

After running a stability diagonistic tests (Cusum test and Chow Breakpoint) I found that some of the time series have a structural break. My question is how to remove this structural break or how to deal with problem?

fifa
Posts: 1
Joined: Tue Aug 26, 2014 1:17 pm

Re: structural break

Postby fifa » Wed Aug 27, 2014 7:19 am

Hi, I'm researching the relationship between real oil prices and real exchange rates from Jan 1980 to Dec 2013. I've created two first difference log variables. Should I do a mutiple structural break test before I do the ADF test or vice versa? Some literature do it before and another after? So I'm not sure? Could you please help?


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