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How to solve serially correlated residuals

Posted: Sun Feb 17, 2019 11:15 am
by kushal_sonigra
Hi guys, I am very new to e-views and am conducting a regression analysis on the log of imports and the log of gdp.

In running my regression I have noticed that the residuals are serially correlated am am trying to find a way to solve this.

I have tried conducting the regression with an ar(1) term, however, the residuals still appear to be serially correlated.

What other solutions can I try? If you could please explain how I can do this as well it would be appreciated, I am not very good at e-views yet but am getting better.

Re: How to solve serially correlated residuals

Posted: Sun Feb 17, 2019 1:26 pm
by startz
You could add an AR(2) term.