It is a general rule in time series analysis that the left and right hand sides of your equation should be integrated to the same degree. You tell us that your dependent variable is stationary, and that your independent variable is stationary after being logged. Consequently you do not have a problem of nonstationarity. David Greenberg, Sociology Department, New York University
----- Original Message -----
From: amatoallah ouchen <[email protected]>
Date: Monday, January 25, 2010 7:02 am
Subject: st: issue about stationarity
To: [email protected]
> Good day Stata Community.
> Sorry to bother you with this query, but I'm confronted to an issue
> about stationarity
>
> I'want to make a regression
>
> Gt=c+log(ht)+εt
>
> the issue is the following: Gt is a stationary process I(0) and ht
> became stationary after the first differentiation I(1).
>
> So how can'I deal with a such problem?
>
> Thanks a lot in advance!!!
>
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*
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