Lagged Dependent Variable - First Difference
Posted: Tue May 01, 2012 9:48 am
Hi,
I am running an OLS regression which contains as a lag od the dependent variable as one of the explanatory variables. My diagnostic tests (LM test ect) indicate serial correlation. I was just wondering what would be the best way to eliminate this in Eviews. I have tried first differencing all the variables but want to know are there any other remedies in Eviews.
Any comments would be greatly appreciated.
Thanks,
S
I am running an OLS regression which contains as a lag od the dependent variable as one of the explanatory variables. My diagnostic tests (LM test ect) indicate serial correlation. I was just wondering what would be the best way to eliminate this in Eviews. I have tried first differencing all the variables but want to know are there any other remedies in Eviews.
Any comments would be greatly appreciated.
Thanks,
S