i have 24 obs annual, with 3 varibles y, k, l
a- model with two variables ( y, k, and intercept) max lag 5, AIC, ADF, 5%, it not show the best model an error message appear (Insufficient degrees of freedom in "FREEZE (_TEMPLM25)_TEMPEQ25.auto(5)")
b- model with 3 variables (y, k, l, and interept) max lag 4, AIC, ADF, 5%, it not show the best model an error message appear (Insufficient degrees of freedom in "FREEZE (_TEMPLM60)_TEMPEQ60.auto(4)")
i have change the sig at 1% and 10 % with model 'a' max lag 5 AIC, ADF same problem. (same problem with model with 3 varibles) :(
but when i use the microfit 4.0 software with my two models it choose ARDL(5, 5) and ARDL(4, 4, 4). my question is why the Add-in did not show the best models? but with microfit 4.0 can do this?
can you solve this problem
kind regards.