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st: correlate lag variables


From   Julia <[email protected]>
To   [email protected]
Subject   st: correlate lag variables
Date   Mon, 10 May 2010 10:16:35 +0200

Dear all,

I would like to calculate the correlation between a variable and its
past values. Thus, I use the following command:

. correlate BI L1.BI L2.BI
(obs=225)

             |           L.      L2.
             | BI       BI      BI
-------------+---------------------------
          BI|
         --. |   1.0000
         L1. |   0.0111   1.0000
         L2. |   0.0647   0.0161   1.0000


However, if I only ask the correlation for the first lag, my result differs....

. correlate BI L1.BI
(obs=265)

             |             L.
             |    BI     BI
-------------+------------------
          BI|
         --. |   1.0000
         L1. |   0.0174   1.0000

 Why does excluding the second lag affect the correlation between the
variable and its first lag?

Best regards,

Julia

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