structural break
Posted: Tue Jul 29, 2014 2:38 pm
by Jone
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?
Re: structural break
Posted: Wed Aug 27, 2014 7:19 am
by fifa
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?