Autocorrelation

[yoyoo]

Hi,
How can I eliminate the autocorrelation to reach Durbin Watson close to 2?
What are the steps to do that?

Thank you in advance.

[startz]

Look at the AR(1) command in the help system.

[yoyoo]

Hi,

I followed the instructions but a message appeared:” Insufficient number of observations”

Attached the snap shots of what I did.
Please help.

Thank you

[EViews Glenn]

Hard to say without seeing the workfile. I do note that you appear to have a three-dimensional panel with 2 observations per block. This may or may not be what you want...

[yoyoo]

This is the work file.

Are the results change if I use/not use the 3D panel data?

Thank you in advance.

[startz]

EViews seems to think the time dimension is your 3rd dimension. You need it to understand that year is the time dimension.

[yoyoo]

It worked after I deleted the time dimension.

Thank you indeed for your help.