I am setting a VAR model with two variables. One of the variables looks like this:
Do you think it's still appropriate to setup the VAR as a time series with "drift" or do you think it must be "drift and trend"? The data is already log-transformed.
I read a few papers and my impression is that every author is handling it differently. The "trend" graph shows that there is a trend but when looking at the graph, it does not seem very clear.