\u2022This is a phenomena that is mainly found in time-series applications.
\u2022Note: Autocorrelation can only happen into the past, not into the future.
\u2022Typically found in \ufb01nancial data, macro data, sometimes in wage data.
3.\u03c1 = 1: The process follows a random walk
4.\u03c1 =\u22121: The process is oscillatory
5.\u03c1 <\u22121: The process explodes in an oscillatory fashion
\ue000i= \u03c1\ue000i\u22121+ ui
\ue000i\u22121= \u03c1\ue000i\u22122+ ui\u22121
\ue000i\u22122= \u03c1\ue000i\u22123+ ui\u22122
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