-2
votes
0answers
30 views

what are the hypothesis of ADF test?

In the adf test, it follows: null hypothesis, $H_0:\delta=0$ versus the alternative hypothesis, $H_1:\delta<0$, in the regression $$\Delta Y_t=\alpha+\delta Y_{t-1}+\gamma_1 \Delta ...
2
votes
3answers
2k views

Why non-stationary data cannot be analyzed?

Searching online, i found out that non-stationary cannot be analyzed with traditional econometric techniques as in case of non-stationarity some basic model assupmtions are not met and correct ...