Lagged Dependent Variable - First Difference

[smurac1986]

Hi,

I am running an OLS regression which contains as a lag od the dependent variable as one of the explanatory variables. My diagnostic tests (LM test ect) indicate serial correlation. I was just wondering what would be the best way to eliminate this in Eviews. I have tried first differencing all the variables but want to know are there any other remedies in Eviews.

Any comments would be greatly appreciated.
Thanks,

S

[startz]

That's what AR(1) is for. As in,

Code: Select all

ls y c x ar(1)