I need help to know which trend specification to use from the options of none, restricted constant, unrestricted constant, restricted trend or unrestricted constant and trend. The research is on the impact of financial development indicators on unemployment.
After selecting optimal lag using AIC, you may use trend specification which gives satisfactory residual diagnostic tests (Jarque Bera normality test, Breusch-Godfrey Serial Correlation LM Test, Heteroskedasticity Breusch-Pagan-Godfrey test, Ramsey test).
I think you can plot the data of both the explained and the explanatory variable to see if they follow a particular pattern. This will inform your choice of trend specification to use.
When doing ARDL testing, the trend specification to use in Eviews depends on the nature of the data and the research question being addressed.
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