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Augmented Dickie-Fuller test (Nick Wray)

1 message · Adrian Trapletti

#
Hi Nick,

If you are using adf.test() from tseries, then the reason is the
linear trend incorporated into the regression. From the help: "The
general regression equation which incorporates a constant and a linear
trend is used and the t-statistic for a first order autoregressive
coefficient equals one is computed."

Regress the data on a constant and a linear trend and check the residuals.

Cheers,
Adrian

Adrian Trapletti

Steinstrasse 9b, 8610 Uster, Switzerland
P +41 44 994 56 30  |  M +41 79 103 71 31
adrian at trapletti.org  |  www.trapletti.org
On Fri, Aug 27, 2021 at 12:00 PM <r-help-request at r-project.org> wrote: