Regression modelEconometrics / time series

Augmented Dickey-Fuller (ADF) Unit Root Test

The Augmented Dickey-Fuller test is the standard procedure for determining whether a univariate time series contains a unit root — that is, whether the series is non-stationary. It extends the original Dickey-Fuller test by including lagged difference terms that absorb serial correlation in the residuals, making the test valid for a wide range of time-series processes encountered in economics and finance.

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Sources

  1. Said, S. E., & Dickey, D. A. (1984). Testing for unit roots in autoregressive-moving average models of unknown order. Biometrika, 71(3), 599–607. DOI: 10.1093/biomet/71.3.599
  2. Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366), 427–431. DOI: 10.2307/2286348

Related methods

Referenced by

ScholarGateAugmented Dickey-Fuller unit root test (Augmented Dickey-Fuller Unit Root Test). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/augmented-dickey-fuller-unit-root-test