On Thu, 17 Mar 2011, Henrique Andrade wrote:
> I would suggest a change in the ADF test (through the GUI). When Gretl asks
> for the lag order I think it would be nice to put a default value for the
> lag order (also leaving the option "test down from maximum lag order")
> selected by default.
>
> Looking at EViews (ADF test) and R (Phillips-Perron test), I'd discovered
> that they use the following default, as suggested by Schwert (Tests for Unit
> Roots: A Monte Carlo Investigation, Journal of Business & Economic
> Statistics, 1989, p.9):
>
> *scalar adf_lag = int(12*($nobs/100)^(1/4))*
I'm not opposed to doing something like that. What do others
think? (Right now we just offer a default of 1 for the ADF
lag-length, and leave it up to the user to raise the order, and to
select the option of testing down from some maximum order.)