!dtrends and outoflik option in the filter

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Hector Herrada

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Feb 28, 2014, 1:44:21 PM2/28/14
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Hi folks, I was wondering if you could help clarify why we get different estimated values for a trend parameter when using the following 2 alternatives. I believe I don't fully understand what the 'outoflik' option does.

!dtrends

Y  += MU;

1) 'MU' is fixed and is estimated to be simply the average of a stationary variable;

2) 'MU' is fixed and is estimated to be simply the average of a stationary variable, but the parameter is called with the 'outoflik' option in the filter.

Thanks!

Hector
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