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yt = f (t)
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yt = f (t)
Linear function of t: yt = α + βt + ut
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yt = f (t)
Linear function of t: yt = α + βt + ut
Quadratic function of t: yt = α + βt + γt 2 + ut
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yt = f (t)
Linear function of t: yt = α + βt + ut
Quadratic function of t: yt = α + βt + γt 2 + ut
etc.
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(a) Linear trend
(b) Quadratic trend
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(a) Linear trend
(b) Linearly detrended
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Further reading:
Wooldridge, chapter 10, sections 5a - 5c
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