The order of integration A)can never be zero. B)is the number of times that the series needs to be differenced for it to be stationary. C)is the value of φ₁ in the quasi difference(ΔY_t - φ₁Y_t_-₁). D)depends on the number of lags in the VAR specification.

Question

Quizplus · Accepted Answer

The order of integration is the number of times that the series needs to be differenced for it to be stationary. It has nothing to do with the other options provided.

The Order of Integration