Hey,

I got hopefully a simple question ;_;. In the regressions, the first difference dependent variable is regressed on the first difference of two independent variables. All data is stationary time series data.

My question is, how do I know when it is important to make sure that no autocorrelation is present? And why is it important if it is lol.

I'm asking this because in general I've understood that it would be important to get rid of autocorrelation so the observations would be independent, and if they would be autocorrelated, they would not be. Is this correct?

Can someone help me out in any way