EViews.com

Thank you so much for your quick and helpful responses today, you've been a great help!

Kind regards,

Thomas

I see, here's a screenshot then!

Thanks for you advice. Looks like i got a lot further now. I stacked the data as the tutorial describes here: http://forums.eviews.com/viewtopic.php?t=74&f=7 Then, I did a regression including the dummy variable on the entire dataset. I used a dummy: d1=1 if Rule based, d1=0 if Discretionary. Th...

So the dummy would look something like this? d:=1 if discretionary, 0 if rule-based. ? How do I add in a dummy in Eviews? I thought of this option before but i couldn't find any tutorial anywhere on using dummies in Eviews. I'm quite new to Eviews and time series in general. Is there any chance you ...

Dear forum participants, My goal is to measure inflation persistence for a set of countries. The set of countries is divided into two sections: 'Discretionary countries' and 'Rule based countries' I use the following regression specification: d(inflation)=c+ b1 d(inflation(-1)). My problem is: i wan...

Thank your for this insightful comment. My supervisor told me that d(inflation)=c+d(inflation-1) would not measure persistence, but i think, like you, that he's probably wrong on this part. If inflation at time t increased with 2 percent, and at time t+1 with 1.8 percent, then inflation finds it har...

Persistence in this case means that inflation is dependent on its past value.
so : inflation = c+b1inflation(-1)+et. If b1 turns out to have a high value, i say that inflation is very persistent.
Hope you can give me some more advice on the basis of this information

20 views and no response yet, someone has to have an idea?

I'm no expert on this either, so take my advice lightly:

Would it make sense to take the first difference of all time series such that the common drift is gone?
You could also logarithmically transform the series.

Dear forum participants. For my bachelor thesis i'm researching inflation persistence. I am currently struggling with finding a suitable model for the corresponding regression specification: inflation=c+inflation(-1). Since inflation is a non stationary process, OLS is unsuitable, unless i transform...