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st: Solution for Autocorrelation in Lag orders for VAR


From   Muhammad Akram <[email protected]>
To   <[email protected]>
Subject   st: Solution for Autocorrelation in Lag orders for VAR
Date   Sun, 5 Feb 2012 20:17:59 +0500

Hi all,

I want to know if any one can guide me to get rid of autocorrelationin lags in Var model.

 

I have following results in my model

 

varlmar, mlag(3)

 

   Lagrange-multiplier test
  +--------------------------------------+
  | lag  |      chi2    df   Prob > chi2 |
  |------+-------------------------------|
  |   1  |   26.8331    16     0.04338   |
  |   2  |   12.3209    16     0.72161   |
  |   3  |   14.3204    16     0.57486   |
  +--------------------------------------+
   H0: no autocorrelation at lag order


Probability of 1st lag indicates autocorrelation. How to solve this problem

 

Thanks

Aasim

  		 	   		  
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