serial correlation - panel with lagged dependent variable
Posted: Tue Oct 06, 2009 8:25 am
Hi!
I am using a simple panel data OLS with 5 cross-sections and 41 periods.
I am using a lagged dependent variable (all the other variables enter as levels), but I am afraid I am getting serial correlation. However, eviews doesn't provide an alternative to the Durbin-Watson. I tried to regress the residuals on the lagged residuals, but I am not sure whether it is the right approach.
Or, perhaps, I should use white-period covariance calculation?
Can you help me?
thanks in advance!
I am using a simple panel data OLS with 5 cross-sections and 41 periods.
I am using a lagged dependent variable (all the other variables enter as levels), but I am afraid I am getting serial correlation. However, eviews doesn't provide an alternative to the Durbin-Watson. I tried to regress the residuals on the lagged residuals, but I am not sure whether it is the right approach.
Or, perhaps, I should use white-period covariance calculation?
Can you help me?
thanks in advance!