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time as an independent variable

Posted: Fri Jun 25, 2010 8:36 am
by jasil
hi everyone.
I'm running a regression where I'm told to include TIME as an independent variable. So my question is: should I state the values of this variable as 1,2,... ? and if this is correct this variable wouldnt be stationary so, would I have to look at the first difference?
maybe E views have some resources to create this kind of varaibles, I would really appreciate some suggestions.
thanks a lot.

Re: time as an independent variable

Posted: Fri Jun 25, 2010 10:01 am
by startz
It's generally fine to include a time trend.

Take a look at the EViews function @trend for creating one.

Re: time as an independent variable

Posted: Mon Jun 28, 2010 8:40 am
by jasil
thanks a lot startz