First Differences

For econometric discussions not necessarily related to EViews.

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jamjars
Posts: 2
Joined: Thu Mar 07, 2013 2:02 pm

First Differences

Postby jamjars » Thu Mar 07, 2013 2:13 pm

i'm new to eviews and econometrics and i'd really appreciate some guidance.

i'm trying to test a cobb-douglas model of the form Y=E∙K^a∙L^b∙D^c , ADF and PP unit root tests show all time series to be stationary in first differences of logarithms.

does the model in logs therefore simply become:

Log ΔY = log ΔE + a log ΔK + b log ΔL + c log ΔD


Thanks

jamjars
Posts: 2
Joined: Thu Mar 07, 2013 2:02 pm

Re: First Differences

Postby jamjars » Thu Mar 07, 2013 2:19 pm

Sorry, should say does the model simply become:
dlogY= dlogE + a dlogK + b dlogL + c dlogD
?


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