Demgo

New Member
#1
What's this about? I'm new to econometrics and i'm trying to understand this conceptually. I know it has to do with nonstationarity (mean, variance and covariance changes over time) and the term "random walk" (the next step is the last one plus a random step) but what's the idea of a unit root? help please!!! thanks so much!!!

Additionally, what's "white noise?"