Good evening,
I have a probit model where:
probit(y) = intercept + beta1*var1 + beta2*var2 + beta3*var3 + beta4*var4
where after performing augmented dickey fuller through the - dfuller - command I obtain that:
y and var2 are both I(0)
var1, var3, var4 are I(1)
I read that since I have variables integrated of different orders, I should use an ARDL model (using command ardl) to test for Cointegration. However I'm not sure if I can because my dependent variable y is I(0). I have searched the web for some insight but I have found no conclusive answer. Is there a problem of using ARDL when y is binary? Is this a problem in probit/logit? Or would it only be a problem if I used LPM?
Additionally, sorry if the question is a bit basic but are all dummy variables I(0)?
Thank you
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