How to solve serially correlated residuals

For econometric discussions not necessarily related to EViews.

Moderators: EViews Gareth, EViews Moderator

kushal_sonigra
Posts: 1
Joined: Sun Feb 17, 2019 11:07 am

How to solve serially correlated residuals

Postby kushal_sonigra » Sun Feb 17, 2019 11:15 am

Hi guys, I am very new to e-views and am conducting a regression analysis on the log of imports and the log of gdp.

In running my regression I have noticed that the residuals are serially correlated am am trying to find a way to solve this.

I have tried conducting the regression with an ar(1) term, however, the residuals still appear to be serially correlated.

What other solutions can I try? If you could please explain how I can do this as well it would be appreciated, I am not very good at e-views yet but am getting better.
Attachments
Spanish Imports.WF1
(11.01 KiB) Downloaded 192 times

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: How to solve serially correlated residuals

Postby startz » Sun Feb 17, 2019 1:26 pm

You could add an AR(2) term.


Return to “Econometric Discussions”

Who is online

Users browsing this forum: No registered users and 18 guests