Regression with an ar(1) or x(-1) term

[Fenix]

Hey!

This might be a stupid question but, is there a difference between using the term ar(1) for a regressor, or just using x(-1)?

I do this regression

Code: Select all

ls ltv c ar(1) dumb

and it is different than

Code: Select all

ls ltv c ltv(-1) dumb

Eviews 7

Regards.

[EViews Gareth]

http://forums.eviews.com/viewtopic.php?f=7&t=465

[Fenix]

Ohhhh, a great article, thanks! So that's why there is this 'convergence' message. Does it use the Cochrane-Orcutt estimator?

[EViews Gareth]

http://forums.eviews.com/viewtopic.php? ... 6732#p6732