I(2) vs I(1) test on first difference?
Posted: Mon May 30, 2011 2:16 am
Hi,
Possibly this is a very dumb question so forgive me. I am doing an assignment where we have been asked to use ADF to test for I(1) on both log(x) and the first difference of log(x), and then to test for I(2) on log(x). From what I can understand from our course notes, the command for both of the last-mentioned is the same thing? or have I missed something crucial?
Thanks in advance
Possibly this is a very dumb question so forgive me. I am doing an assignment where we have been asked to use ADF to test for I(1) on both log(x) and the first difference of log(x), and then to test for I(2) on log(x). From what I can understand from our course notes, the command for both of the last-mentioned is the same thing? or have I missed something crucial?
Thanks in advance