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Hi,

When making a model better can I use both dummy and trend in one model? - as this would then correct for structural break within my data also the trend will allow my model to then have the correct functional form.

I have already created separate models one including a dummy and the other a trend.

But I have to choose only two best long run models and the dummy model on its own does not give me the correct functional form.

Kind regards

A.

Yes.

thank you.

A.

Hi Guys,
Hoping someone can help me...can you model a dummy variable to be case sensitive or does it have to be done manually? I want to create a dummy to correspond with my data sets increases and decreases.For instance, if the data increases it will be 0 and it will only be 1 if there are decreases year on year. How can I word this command?