First Differences
Posted: 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
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