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Relative efficiency of absolute data and first differences in regression analysis : the case of autocorrelated disturbances

Abstract:

In two recent articles, Geary and Tillman have compared the efficiency of using data in absolute form or in the form of first differences in regression analysis of economic time series. Both authors take a highly unfavourable view of the widely-used method of first differences: Geary concludes that this method will usually be highly inefficient and suggests instead the inclusion of a time trend along with the independent variable X in its original form. Tillman extends the discussion to the c...

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Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author
Publisher:
Economic & Social Research Institute Publisher's website
Journal:
Economic and Social Review Journal website
Volume:
5
Issue:
1
Pages:
47-58
Publication date:
1973-10-01
ISSN:
0012-9984
Language:
English
Keywords:
Subjects:
UUID:
uuid:699ac9e0-0613-4c0d-8dde-be98a60fed59
Local pid:
oai:economics.ouls.ox.ac.uk:10470
Deposit date:
2011-08-16

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