Panel Data (low DW stat)
Posted: Thu Mar 17, 2011 3:27 am
Hi guys and moderators!
Please help if you see this! i am working on my thesis right now. im using eviews 7....
I am dealing with panel data from period 1985 to 2004.
I have regressed my panel data using OLS and i get a R square of 0.2 and DW stat of 0.4..... i have about 500 observations
The p values of my coefficients of my x1, x2, x3, x4 are very significant, appromx close to 0.
Hence, i am suspecting that there is serial correlation of my residuals as suggested by my DW stat..
so what should i do now?
i read about VEC and VAR. should i be doing this? and if so...how could i go about it??
appreciate your replies!! =)
Please help if you see this! i am working on my thesis right now. im using eviews 7....
I am dealing with panel data from period 1985 to 2004.
I have regressed my panel data using OLS and i get a R square of 0.2 and DW stat of 0.4..... i have about 500 observations
The p values of my coefficients of my x1, x2, x3, x4 are very significant, appromx close to 0.
Hence, i am suspecting that there is serial correlation of my residuals as suggested by my DW stat..
so what should i do now?
i read about VEC and VAR. should i be doing this? and if so...how could i go about it??
appreciate your replies!! =)