Autocorrelation Autocorrelation is present if the disturbance terms are correlated. Three issues need to be addresse How does autocorrelation arise? How to detect autocorrelation? Alternative estimation strategies under autocorrelationSlide 20 Autocorrelation • Autocorrelation is present if the disturbance terms are correlated. Three issues need to be addressed. – How does autocorrelation arise? – How to detect autocorrelation? – Alternative estimation strategies under autocorrelation