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when Newey-West doesn't correct serial autocorrelation

Posted: Sun May 03, 2015 3:21 am
by saurah
Hey!

I have discovered serial autocorrelation in my regression (pvalue 0.000) and want to correct it.
So I reestimate the equation using HAC (Newey-West), but when I check for autocorrelation again the pvalue is still 0.000 = serial autocorrelation, right?

How can I fix this?

Thanks!

Re: when Newey-West doesn't correct serial autocorrelation

Posted: Sun May 03, 2015 8:00 am
by startz
Newey-West corrects standard errors for serial correlation. It does not eliminate serial correlation. Look for AR terms in the Help system.