Eugenio,  As a follow-up to our meeting yesterday, a series of evaluations was conducted on the housing starts data to insure that the time series response variable was stationary (recall our brief discussion of results based on non-stationary time series).
Dickey-Fuller and Augmented Dickey-Fuller (accounting for autocorrelation in the error term) unit root tests were used in the evaluation process.
Given the limited number of observations for  certain potentially important explanatory variables (e.g., %population change, etc.
), we tested the housing starts variable over 3 historical periods.
The results are provided below:  Period 1:  1959 through 2001 (obs=503)  TEST		TEST STATISTIC		CRITICAL VALUE (p=0.05)      DF			-6.712				-1.95

Housing Data and Stationarity
Eugenio, As a follow-up to our meeting yesterday, a series of evaluations was conducted on the housing starts data to insure that the time series response variable was stationary (recall our brief discussion of results based on non-stationary time series).
Dickey-Fuller and Augmented Dickey-Fuller (accounting for autocorrelation in the error term) unit root tests were used in the evaluation process.
Given the limited number of observations for certain potentially important explanatory variables (e.g., %population change, etc.
), we tested the housing starts variable over <NUMBER> historical periods.
The results are provided below: Period <NUMBER>: <NUMBER> through <NUMBER> (obs=<NUMBER>) TEST TEST STATISTIC CRITICAL VALUE (p=<NUMBER>) DF <NUMBER> <NUMBER>
non stationary data insure time unit root tests housing starts variable autocorrelation error term certain potentially important dickey fuller accounting number historical periods results