I have 5 time series data points, of which 3 are absolute values and 2 are percentage terms. After converting the absolute values into log form, can I use ARDL?
Yes, you can use ARDL for time series data analysis even if some of the variables are in absolute values and some are in percentage terms. ARDL (Auto Regressive Distributed Lag) is a method that can be used for modeling the relationship between two or more time series variables. It is particularly useful when the variables are non-stationary, meaning that they have a trend or a seasonality component that needs to be accounted for. ARDL can handle both stationary and non-stationary variables, and it can also handle mixed orders of integration, such as I(0) and I(1)
Therefore, you can use ARDL to model your time series data that contains both absolute values and percentage terms. @ritu