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- Fri Sep 01, 2023 4:22 am
- Forum: Econometric Discussions
- Topic: ARDL and multicollinearity
- Replies: 14
- Views: 113325
Re: ARDL and multicollinearity
The ARDL (Autoregressive Distributed Lag) approach can help mitigate multicollinearity to some extent by differencing the data, which can reduce the correlation between independent variables. However, it's not immune to multicollinearity issues, especially when you include a high number of lag terms...