Hi all.
I am studying the determinants of private investment using the ARDL model. I have yearly data of the last 30 years which is quite small and limited. The ARDL results however promising are showing that there is serial correlation in the residuals (Breusch-Godfrey Test - I reject the null of no serial correlation). I am using maxlags 2 and cannot increase the number of lags to 3 due to the limited time periods that I have. This has led me to be kind of stuck and I cannot understand what I should or could do to move forward.
Any help would be greatly appreciated. Thank You.
I am studying the determinants of private investment using the ARDL model. I have yearly data of the last 30 years which is quite small and limited. The ARDL results however promising are showing that there is serial correlation in the residuals (Breusch-Godfrey Test - I reject the null of no serial correlation). I am using maxlags 2 and cannot increase the number of lags to 3 due to the limited time periods that I have. This has led me to be kind of stuck and I cannot understand what I should or could do to move forward.
Any help would be greatly appreciated. Thank You.
