Stationarity Test: ADF in STATA

In todays video, I take you through the procedure for testing stationarity in stata using the ADF unit root test. I also explain how you interpret the results.

[@arnavwadhwa3126]

Thank you sooo much for this series Naomi. Can you make a video on how to perform the Zivot and Andrews Stationarity Test on Stata.

[@michaelmbui8226]

This is great! So valuable for students, researchers & corporate professionals. Good job

[@excellingwithnaomi]

Thank you so much

[@stephentumaini5325]

Thank you. This is so important

[@excellingwithnaomi]

Glad it was helpful!

[@norasyikinabdullahfahami5113]

Thank you so much Naomi! Very helpful video.. Keep it up!

[@excellingwithnaomi]

Thank you

[@dancanndungu3514]

i need teaching on STATA. Good work.

[@excellingwithnaomi]

Hi Dancan. I also do personalized tutorials. Kindy reach me through whatsapp on 0721647722

[@geraldsomto2718]

Great job

[@bethwanjiku936]

Commendable. Keep up the spirit.

[@excellingwithnaomi]

Thank you so much

[@kariswajulia5795]

Thank you.. keep up siz

[@excellingwithnaomi]

Thank you

[@benkondia9757]

Wow! Keep it up daughter. The Lord enlarge your scope.

[@excellingwithnaomi]

Yes! Thank you!

[@muhiazreviews649]

Thankyou very much....

[@excellingwithnaomi]

Welcome muhiazreviews

[@hon.eugenetv606]

Wouuh this is so good

[@excellingwithnaomi]

Thank you so much

[@ainsufia8194]

hi naomi, good explanation! but can i ask on the ADF test, why is it when i click "suppress constant term in regression" the result shows stationary but then i click "include trend term in regression" and "include drift term in regression", both results show non-stationary for the variable? hope you can help me with this. much appreciated, thank you!

[@hudayfedaror7850]

Suppress constant term means no intercept and no trend but when you choose include the trend means you included your model the trend and the intercept. However, you have to check your model to have - sign. If put models have - sign thhen they are valid and you can choose the one you want. I hope Noami should include the meaning the each one so students can follow accordingly.

[@olliecumming3225]

Why do you select 1 lag for the Dfuller test? I have been using Dfgls to determine lags length but sometimes it tends to yield extremes. If anyone could help that would be much appreciated

[@DemasMshairi]

Great job Naomi, Can we get the powerpoint notes on stationarity?

[@excellingwithnaomi]

@DemasMshairi. Thank you. Sure. I will make some notes and pin the notes in this video

[@samuelmaina8769]

Hello, does someone have to find the logs of the variables before running the test?

[@excellingwithnaomi]

Hello@samuelmaina8769. Finding the logs of the variable is not a must. However, its necessary especially when the data is highly skewed. It helps educe the skewness.