Page 1 of 1

Detrending time series

Posted: Wed Mar 09, 2016 11:33 am
by Dwaxt
HI, I have several problems and I am not sure, where I am wrong, so I would like to ask you. I need to do VAR model between the GDP of three countries, however the series seems to have deterministic trend. For that purpose, I create command in eviews, then run LS regression like this ls usgdp c trend. Are the residuals detrended data ? If they, why it is still not stationary, when I test it with ADF test it says that is not stationary. Is it possible series to have both deterministic and stochastic trend ?
Anyway, if I run AR(1) model can I remove the trend from this model ?