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sparseDFM (version 1.0)

transformData: Transform data to make it stationary

Description

Methods to transform the data to make it stationary. Input a \(n \times p\) numeric data matrix and what transform is required for each data series. Returns a \(n \times p\) matrix of the transformed data.

Usage

transformData(X, stationary_transform)

Value

Transformed stationary version of \(\bm{X}\).

Arguments

X

n x p numeric data matrix

stationary_transform

p-dimensional vector filled with numbers from \(\{1,2,3,4,5,6,7\}\) representing:

1no change
2first difference \(X_{i,t} - X_{i,t-1}\)
3second difference \((X_{i,t} - X_{i,t-1}) - (X_{i,t-1} - X_{i,t-2})\)
4log first difference \(log(X_{i,t}) - log(X_{i,t-1})\)
5log second difference \((log(X_{i,t}) - log(X_{i,t-1})) - (log(X_{i,t-1}) - log(X_{i,t-2}))\)
6growth rate \((X_{i,t} - X_{i,t-1})/X_{i,t-1}\)
7log growth rate \((log(X_{i,t}) - log(X_{i,t-1}))/log(X_{i,t-1})\)