New integration order test simplifies non-stationary variable analysis.
The paper introduces a new test called Order of Integration Test (OIT) as a simpler alternative to Unit Root Testing. The test uses an autoregressive model and generalized least squares to determine if a variable is stationary or not. The test was applied to two datasets, showing one to be integrated order one (I(1)) and the other to be I(2). This was confirmed by other unit root tests. The OIT is a better alternative for determining the integration order of variables compared to traditional methods.