Dear all,
I have a question about the optimal number of lags for the Breusch-Godfrey Test. I have daily data of US Bond yields for two and ten years. Due to the fact that I am suspecting serial correlation, I would like to test with the aforementioned test, however, I do not know which lag length to use.
Does anybody have a rule of thumb or method on how to determine the optimal lag length?
Any hint is appreciated!
Best,
Nick
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