Identities: as text or as equations?

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Danxxx
Posts: 11
Joined: Mon Jun 07, 2010 10:06 am

Identities: as text or as equations?

Postby Danxxx » Sat Oct 30, 2010 5:22 am

This is a follow-up to my previous post
> Effect of RHS variables on dependent variable (_1 vs _0)
>http://forums.eviews.com/viewtopic.php?f=10&t=3210
where I discussed creating a model from an equation; then I can change the RHS variables one at a time to see the effect on the dependent variable.

With a text identity, however, I can't do that. So if I have an identity like
GDP$ = GDP/RX
maybe I should set it up as an equation
equation EQ_GDP$.ls GDP$ GDP/RX

The coefficient will equal one (unless there is some weirdness with the historical data, but then presumably I can change the coefficient to 1).

Can you seen any problem with this approach? (ie building a large model where all identites are equations, not text).
Also, can I still list it as @identity when it is not text?

TIA, Dan

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