Hello,
I am trying to regress some time series variables in Gretl. The data i'm using covers 16 time intervals on 6 explanatory variables for one country. When checking for autocorrelation i found the following critical values: dL=0,615 and dU=2,157 (http://www.stanford.edu/~clint/bench/dw05a.htm). The DW statistic from the OLS estimation was 2,477 so i found the Durbin-Watson test to be inconclusive. I would be very thankful if anyone could help me with the following two questions:
1) Do i need to use normal OLS or build a dynamic model?
2) I tried to build a dynamic model with lags, but i could only add 1 lag from each variable. Gretl doesn't allow me to add more lags.. Is this due to the short data sample?
Many thanks in advance
Emiel Denuwelaere