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What is the order of Integration of following?

1 message · Ron Michael

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Hi, can anyone please tell me what is the order of Integration of following
series : y[t] = 1.1*y[t-1] +epsilon
In naked eye, it looks it is of order 1, because, the coef. is close to 1.
However when I generated the series, it remains non-stationary even after 8
differencing.

y <- vector(length=1000); y[1]<-100; for (i in 2:1000) y[i] <- 1.1*y[i-1] +
rnorm(1)
plot(diff(y, differences = 8))

Also interested to know, does anyone face this kind of DGP in his practical
data analysis?