[Gretl-users] Do we test for unit root in Dummy variables

Hi All,          I wish to know if we test for unit root in dummy variables.           Thanks --- On Fri, 11/12/10, Allin Cottrell <cottrell(a)wfu.edu&gt; wrote: From: Allin Cottrell <cottrell(a)wfu.edu&gt; Subject: Re: [Gretl-users] Getting the restricted parameters estimates To: "Gretl list" <gretl-users(a)lists.wfu.edu&gt; Date: Friday, November 12, 2010, 6:08 PM On Thu, 11 Nov 2010, Henrique Andrade wrote: gretl will do that automatically for you only if you're using OLS. But you can do it yourself: y = b1 + b2*x2 + b3*x3 + u H0: b2 + b3 = 1 => b3 = 1 - b2 => y = b1 + b2*x2 + (1 - b2)*x3 + u => (y - x3) = b1 + b2*(x2 - x3) + u So: y = E - PUS x = PAU - PUS tsls y const x ; const <your instruments here> Allin Cottrell _______________________________________________ Gretl-users mailing list Gretl-users(a)lists.wfu.edu http://lists.wfu.edu/mailman/listinfo/gretl-users