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Hello to all,

Currently i am working on ARDL bound test for my project..but i am facing few problems it would be great if you help me out.
Firstly i have six variables (including my depended variable) with 43 number of annually observations and having combination of I(0) and I(1).

one of basic step what i get while studying about ARDL bound test is to use optimal lag length while construction your model, my question is how i select optimal lag length there must be some method or criteria by following it one select optimal lag length.

Kindly help me out..Thank you in advance...

hi
this is my problem.too

u.the method i know about optimal lag is below: may be it helps u
optimal lag length can be obtain in eviews..open quick menu ---> estimate var ---> write two of your variables in endogenous variable box(or all variables ) , writ constant name in exogenous variable box give lag interval like 1 2 . press ok
view menu-->lag structure --> lag length criteria --> enter lag value till 6 (i m not sure about this, according to your work ), select the lag which has maximmum stars like below ( lag 1 has max stars so this is the ptimal lag for the your variables)

Lag LogL LR FPE AIC SC HQ


0 -43.67185 NA 0.040479 2.468748 2 .555825 2.499447
1 101.1663 266.1891* 2.00e-05* -5.144126* -4.882896* -5.052030*
2 102.3907 2.117822 2.33e-05 -4.994092 -4.558708 -4.840599
3 103.3477 1.551911 2.76e-05 -4.829606 -4.220069 -4.614716