What is the best way to estimate the model when dependent variable is level stationary?
We can use the ARDL model when none of the series is integrated of order two.
Thank you Belloumi and Bento for your help. So we can use ARDL even if dependent variable is I(0) given that none of the series is I(2).
You can run ARDL model when variables are I(0) and I(1) but should not be I(2). I have made ARDL model video and put it in EVIEWS section of Hossain Academy below. You can check it.
http://www.sayedhossain.com/EVIEWS.html
ARDL is best choice for this kind situation. In fact, it is designed for such case in heart
It would be better to employ ARDL when dependent variable is in I1 integrated but in some models can be used and some independent variables in 10 and some in I1 become stationary. And no variable in 12.
- Badges
- Science topic
- Similar topics
- Correction