Hi Angelo,
have a look at the following example which uses 'gls' in the nlme package.
library(nlme)
x <- runif(100, 0, 1) y <- x + exp(4*x)*rnorm(100, 0, 2) gls(y~x, correlation = varExp(form=~x))
For details see ?gls and ?varExp.
Christian
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