Hello Sayed, if I have a few variables for a few countries for a time-series of 1980 to 2012 . Do I run the ADF for each variable for each country ? Or could I just open all the variable for that particular country as a group in e-view and run the ADF ? eg running 6 variable for country A at one time.
Sayed Hossain Did u apply Unit root test properly? However I am giving the two videos below from Hossain Academy for ADF. Follow it, Hope so you can do now.ua-cam.com/video/ixra9uT7sy4/v-deo.html&feature=view_all
i need answer if some variables are at level and others are the first difference so what I can do so can go at first difference or at level and how the equation will be
KPPS results: the LM stats is greater than the critical values at 1%, 5% and 10% level meaning we reject the null that the variable "is stationary" at level - after first differencing LM is smaller at 1% level meaning we do not reject the null that it is stationary, but i larger than 5% and 10% critical values meaning we reject the null that it is stationary- this seems contradictory since 1% is better so - should I therefore ignore the 5% and 10% levels and conclude variable is 1(1)?
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what about, if the coeffecient was not negative? and also if i have the t-statistic is indicating the variable is nonstationary while the p-value says the opposite ( i mean it says that data is stationary, then would i say that it is stationary or not?
Sir, I need a clarification. If I used log data to two variables ‘x’ and 'y'. And I found both variables are stationary at the first difference. So for analysing Johansen's test, Engle- Granger test, VECM test, which data should I use? Is it first difference data or log data?
ADF tests suggests that a variable is stationary after first differencing using Intercept only, or Trend and intercept but not stationary when None is selected. PP test however suggests that the variable(at level) is stationary with Intercept only, but not stationary when Trend & Intercept or None is selected. PP shows that It is stationary for all i,e with Intercept, Trend & Intercept and None after first differencing. This confusing - Is this variable an I(0) variable or is it I(1)?
You have to satisfy all three such as none, intercept and intercept+trend. When all three are satisfied after first differenced, the variable will be known as I(1).
Sir, I check the stationarity of the real exchange rate and found that it is non-stationary at level, in case with intercept and with none. But it is stationary at level, in case with trend and intercept. What should I conclude, stationary or not? After I take the first difference, all 3 cases are stationary.
Thank you. I would like to invite you to join Hossain Academy Facebook Group at below link and join our group discussion. Thank you. Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
Dear Cam I would like to invite you to join Hossain Academy Facebook at below link to discuss about economics, econometrics and statisti cal models using EVIEWS, STATA, R, SPSS, Minitab, Microfit, Lingo, and Excel. Thank you, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
+Yosina Manggrat Dear Yosina, I would suggest you to join Hossain Academy Facebook at below link and post yourquestion there. If I know the answer I shall respond. Thank you once again, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
Sayed Hossain I would like to invite you to join Hossain Academy Facebook for greater interaction about economics, finance and econometrics. Thank you Sayed Hossain from Hossain Academyfacebook.com/groups/hossainacademy/
+Sayed Hossain Dear May, I would like to invite you to join Hossain Academy Facebook at below link to discuss about economics, econometrics and statistical models using EVIEWS, STATA, R, SPSS, Minitab, Microfit, Lingo, and Excel. Thank you, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
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thank you very much my p value is 1.0000 and t statistics is more than every level but my coefficient is positive and constant is negative resulting unit root test show null hypothesis; export has a unit root ....please could you explain it. thank you sir.
wonderful sir.. i have a question (may be it sound silly coz i am not from statistical background and i regret for that) what to do if our coefficient is not negative ?
+Abida Zanib Thank you. I would like to invite you to join Hossain Academy Facebook for greater interaction about economics, finance and econometrics with me. Thank you Sayed Hossain from Hossain Academy. Please join below and post your question .facebook.com/groups/hossainacademy/
Dear Krischira, Thank you. I would like to invite you to join Hossain Academy Facebook at below link and post your question there. If I know the answer I shall certainly respond. Thank you once again, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
thank you very much! ur english is very clear, so I can easily understand!!! even i'm no goog at english!! god bless you! and joy and peace abide in you all! thank you!!! good luck! ps. I could not find the p valuve that is less than 0.05... so i put maxlag to 9, than I can find the 0.0000 p value... so.. in this case, what can I conclude it?? rejct the null hypothesis??
p value can not be zero. Normally eviews shows 4/5 digits after dicimal, so here p value has shown five zero after decimal in estimating p value. I guess actual p value may be =0.0000000001 which is less than 5 percent.
Dear Yadav, Thank you. I would like to invite you to join Hossain Academy Facebook at below link and post your question there. If I know the answer I shall certainly respond. Thank you once again, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
Thank you. I would like to invite you to join Hossain Academy Facebook Group at below link and join our group discussion. Thank you. Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
you probably know what your talking about, but you should definitely work on your presentation skills. In my opinion, you should not write everything down, this takes so much time. However, if you want your audience to see it with their eyes, prepare the writing beforehand. Hence, my last feedback point would not be existant anymore: Your english should be optimized! However, i still watched it and helped me. Thank you
Dear Nisar, Thank you. I would like to invite you to join Hossain Academy Facebook at below link to discuss about economics, econometrics and statisti cal models using EVIEWS, STATA, R, SPSS, Minitab, Microfit, Lingo, and Excel. Thank you, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
You are a good tutor. I am learning eviews from you very well. It is so easy to learn especially with basic econometrics knowledge.
Though the commentator is a bit slow but it is good for beginner and helpful in learning.Great videos...salute to your service
Hello Sayed, if I have a few variables for a few countries for a time-series of 1980 to 2012 . Do I run the ADF for each variable for each country ? Or could I just open all the variable for that particular country as a group in e-view and run the ADF ? eg running 6 variable for country A at one time.
what do I do if I cant find a variable (with only 8 observations) stationary at level, 1st difference and 2nd difference using the ADF test in Eviews?
Mwila Bowa Do u want to say that your variables do not become stationary at all?
Sayed Hossain Did u apply Unit root test properly? However I am giving the two videos below from Hossain Academy for ADF. Follow it, Hope so you can do now.ua-cam.com/video/ixra9uT7sy4/v-deo.html&feature=view_all
Sayed Hossain exactly, one of my variables did not become stationary at all after i did the unit root test.
thank you, I will try and do it again following the steps in the videos
Make sure there are two videos one after another. It is taken from Hossain Academy at www.sayedhossain.com
i need answer if some variables are at level and others are the first difference so what I can do so can go at first difference or at level and how the equation will be
KPPS results: the LM stats is greater than the critical values at 1%, 5% and 10% level meaning we reject the null that the variable "is stationary" at level - after first differencing LM is smaller at 1% level meaning we do not reject the null that it is stationary, but i larger than 5% and 10% critical values meaning we reject the null that it is stationary- this seems contradictory since 1% is better so - should I therefore ignore the 5% and 10% levels and conclude variable is 1(1)?
Super video once again. Very great job.
Thank you Marc for appreciation. Sayed Hossain from Hossain Academy at www.sayedhossain.com
does eviews automatically transform level variable to first difference?
Great video, after watching it helped me a lot in doing my Econometric assignment Thank you!
+Jerod Coutou Thank you. I would like to invite you to join Hossain Academy Facebook for greater interaction about economics, finance and econometrics with me. Thank you Sayed Hossain from Hossain Academy. Please join below and post your question
.facebook.com/groups/hossainacademy/
what about, if the coeffecient was not negative? and also if i have the t-statistic is indicating the variable is nonstationary while the p-value says the opposite ( i mean it says that data is stationary, then would i say that it is stationary or not?
Sir, I need a clarification. If I used log data to two variables ‘x’ and 'y'. And I found both variables are stationary at the first difference. So for analysing Johansen's test, Engle- Granger test, VECM test, which data should I use? Is it first difference data or log data?
ADF tests suggests that a variable is stationary after first differencing using Intercept only, or Trend and intercept but not stationary when None is selected. PP test however suggests that the variable(at level) is stationary with Intercept only, but not stationary when Trend & Intercept or None is selected. PP shows that It is stationary for all i,e with Intercept, Trend & Intercept and None after first differencing. This confusing - Is this variable an I(0) variable or is it I(1)?
If the coefficients are positive what we will do?
You have to satisfy all three such as none, intercept and intercept+trend. When all three are satisfied after first differenced, the variable will be known as I(1).
arent some of the variables insignificant because their p-values are more than 0.05?
Sir, I check the stationarity of the real exchange rate and found that it is non-stationary at level, in case with intercept and with none. But it is stationary at level, in case with trend and intercept. What should I conclude, stationary or not?
After I take the first difference, all 3 cases are stationary.
Why the coefficient of the lagged variable on unit root testing must be negative?
It needs a huge explanation not possible here to answer. For details, go to Basic Econometrics by Damodar Gujartati...
I guess you need to use Panel Data to operate it as you have many countries. But I have not done anything with panel yet.
Sir what to do if the series does not become stationary even at 2nd difference.
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You plot all variables and if you find trend, then you can use it.
what do i do if my coefficient is not negative? meaning my model is not viable?
convert the data into log and try
Sir, my p value and t statistics aren't at the same. Could you tell me the reason why, please?
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All three options must come to same decision to take a decision whether a variable is stationary or not, the way I have shown,
Yes only VECM model estimation does it.
what the common second difference in eviews ? Y C X1 X2
+Yosina Manggrat
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clear and easy to understand......very nice job..Thank you very much :)
Thank you Anisur.
Thank you Anishur. Last time I mistakenly spell your name wrongly. Sorry.
In ADF model, all three conditions must be made before taking any decision.
what is the name of this software ?
It's Eviews
Hi bro, how can detect unit root using phillips-perron test?
Fofana Mam Philips perron I have not done yet
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So how can I do for stationary?
+May Kyaw There are two ways. They are either ADF test or correlogram for stationary testing
+Sayed Hossain
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Thanks sir, i have a question ( How does Panel data use ADF ?)
I have not used ADF in Panel yet may be in future
Sayed Hossain So , in the panel , I can use the ADF for each variable according to time series and general conclusions are not?
As I said, I have not done anything with ADF in Panel. So unable to comment. Thanks
Thanks sir.
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thank you very much my p value is 1.0000 and t statistics is more than every level but my coefficient is positive and constant is negative resulting unit root test show null hypothesis; export has a unit root ....please could you explain it. thank you sir.
P should not be 1. Please keep on trying and convert the data into log and try. Thank you. Sayed Hossain from Hossain Academy
wonderful sir.. i have a question (may be it sound silly coz i am not from statistical background and i regret for that) what to do if our coefficient is not negative ?
To know about it, read Basic economietrics of Gujarati to know about Unit root Test as the explanation has vast quantity...
If the t stat is not negative we fail to reject the null of non-stationarity, meaning it is a non-stationary series.
You have to take absolute t value, that is it has no sign...now proceed....
Thank you so much. You save my life again. :) :) :)
Happy to know that your life has been saved. If possible leave a comment in Hossain Academy guest book
Yes I have plan in future
Thank you so much. It is very useful. JazakAllah
+Abida Zanib Thank you. I would like to invite you to join Hossain Academy Facebook for greater interaction about economics, finance and econometrics with me. Thank you Sayed Hossain from Hossain Academy. Please join below and post your question
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p value and t statistics always will give you the same decision as they are related.
very good and clear, thank you very much.
Dear Krischira, Thank you. I would like to invite you to join Hossain Academy Facebook at below link and post your question there. If I know the answer I shall certainly respond. Thank you once again, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
Thank you, sir!
thank you very much! ur english is very clear, so I can easily understand!!! even i'm no goog at english!! god bless you! and joy and peace abide in you all! thank you!!! good luck!
ps. I could not find the p valuve that is less than 0.05... so i put maxlag to 9, than I can find the 0.0000 p value... so.. in this case, what can I conclude it?? rejct the null hypothesis??
p value can not be zero. Normally eviews shows 4/5 digits after dicimal, so here p value has shown five zero after decimal in estimating p value. I guess actual p value may be =0.0000000001 which is less than 5 percent.
that was my result :
t-Statistic
2.202056
-2.685718
-1.959071
-1.607456
and p-value:
0.9906
Thank you Sir! I found the answer! Gujarati, 5th edition, chapter 21- Tme Series!
You are welcome. There he has explained in detail
really thank you
Thank you
5 percent is fine
its a grt 1. its helps me a lot. but the commentator is too slow. othrwise its fine
Dear Yadav, Thank you. I would like to invite you to join Hossain Academy Facebook at below link and post your question there. If I know the answer I shall certainly respond. Thank you once again, Sayed Hossain from Hossain Academy. facebook.com/groups/hossainacademy/
ay thnk you sr...plsure to got response frm you
funny presentation :)
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you probably know what your talking about, but you should definitely work on your presentation skills. In my opinion, you should not write everything down, this takes so much time. However, if you want your audience to see it with their eyes, prepare the writing beforehand. Hence, my last feedback point would not be existant anymore: Your english should be optimized! However, i still watched it and helped me. Thank you
Yes I have limitations in my presentation I agree.
and iam working at 5% level
Fast commentary will reduce the utility of these videos.
Dear Nisar, Thank you. I would like to invite you to join Hossain Academy Facebook at below link to discuss about economics, econometrics and statisti cal models using EVIEWS, STATA, R, SPSS, Minitab, Microfit, Lingo, and Excel. Thank you, Sayed Hossain from Hossain Academy.
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