Why is it important that time series are “stationary” and what are the implications of non-stationary on OLS estimates? Outline an approach you could use to make a non-stationary series stationary. Discuss what is meant by cointegration and how you would test for it.

Why is it important that time series are “stationary” and what are the implications of non-stationary on OLS estimates? Outline an approach you could use to make a non-stationary series stationary. Discuss what is meant by cointegration and how you would test for it.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter5: Inverse, Exponential, And Logarithmic Functions

Section: Chapter Questions

Problem 9T

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