In forecasting, a practical question often arises:
Let’s presume t is the first period for which the model is solved i.e. all endogenous variables are unknown.
Then, if we have information on endogenous for t or t+x, we can incorporate them in the solution with the model.exclude(actexist=t) statement.
If however we have the following situation:
x = y + z
and if we observe x (which is an identity) but not y and/or z (which are endogenous behavioral), how can we guarantee the holding of the identity? This is a very practical question since in Macroeconomics, we often observe the aggregates before we observe the detailed components.
For technical support, tips and tricks, suggestions, or any other information regarding the EViews model object.
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