You should look for "L operator".
The model for adf is (1-L)y = b0 + (a-1)*y(-1) + e
But isn't adf is using reg of change of y to lag of y?
The (1-L)y is not refering to change of y
Clicking the use first difference generate the same (1-L)y rather using change of y
What does L represent?
Clarodina
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