Author Question: The order of integration A) can never be zero. B) is the number of times that the series needs ... (Read 72 times)

Mr.Thesaxman · **on:** Jun 29, 2018

The order of integration

A) can never be zero.
B) is the number of times that the series needs to be differenced for it to be stationary.
C) is the value of 1 in the quasi difference(Yt - 1Yt-1).
D) depends on the number of lags in the VAR specification.

Question 2

I am an applied econometrician and therefore should not have to deal with econometric theory. There will be others who I leave that to. I am more interested in interpreting the estimation results. Evaluate.

What will be an ideal response?

Question 3

To test the null hypothesis of a unit root, the ADF test

A) has higher power than the so-called DF-GLS test.
B) uses complicated interative techniques.
C) cannot be calculated if the variable is integrated of order two or higher.
D) uses a t-statistic and a special critical value.

Ahnyah · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Answer: B

Answer to Question 2

Thanks for the answer, I sent you a forum message for another one.

Answer to Question 3

Answer: D