Page 1 of 1

Trend and/or an intercept?

Posted: Fri May 20, 2011 1:09 am
by Erasmus
I'm working on a big assignment using Eviews but I'm having a few problems working out some things. Maybe some of you could help me out.
One of the things I dont really know is how I can find out if i have to use a trend and or an intercept? This is in the Unit-Root test with test type Augmented Dickey-Fuller.

Re: Trend and/or an intercept?

Posted: Mon May 30, 2011 5:35 pm
by econometricsI
Hey I am doing an assignment too and got the same problem. My problem is how do you decide if trend component @trend should be left in the model or not. I am guessing you would have already finished your assignment now and I am already late in answering. But would you be able to help me out?