Monday, January 9, 2023

ADF TEST- drift, trend and constant

Hi everyone,

I am a beginner when it comes to STATA, and I currently carrying out a time-series analysis using the VECM.

I have a question related to the ADF TEST.

I don't actually know in which situations I should include the drift, the trend and the constant.

Can someone please help me with that?
Thanks in advance

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