How to seasonally adjust a series

[naetpenn]

Hello,

I have data on housing starts. I was wondering how I can seasonally adjust this data by using dummy variables.

Do I just create a dummy variable for each month, graph the regression, and then look at the residuals from the estimated regression and the original data?

I have a feeling that I have to add in an intercept of some sort to the residuals in order to complete seasonal adjustment?

Thank you so much in advance.

[startz]

That's basically right. You can do something like

Code: Select all

ls y @expand(@month) series ySeasonallyAdjusted = resid + @mean(y)