Look at the plot of the logarithm of the Japan Index of Industrial Production in Figure 15.2c.

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Look at the plot of the logarithm of the Japan Index of Industrial Production in Figure 15.2c. Does this time series appear to be stationary? Explain. Suppose you calculated the first difference of this series. Would it appear to be stationary? Explain.

Figure 15.2c

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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