Hi! I'm a Brazilian user of EV.
I have a model with some equations and identities. The format is something like:
eq1 = f (X1, X2, X3)+e1
eq2 = f(Y1, Y2, Y3)+e2
I'd like to add the restriction/identity:
eq1=eq2
And, of course, cov(e1,e2)<>0.
But I can't add 'eq1=...' twice (recognized as endogenous by the model specification). The problem is analogous to the demand and supply problem.
Someone has any idea how can I proceed?
Tks in advance!
Fabio
Adding Restrictions/Equation Identity
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Re: Adding Restrictions/Equation Identity
fmramos wrote:Hi! I'm a Brazilian user of EV.
I have a model with some equations and identities. The format is something like:
eq1 = f (X1, X2, X3)+e1
eq2 = f(Y1, Y2, Y3)+e2
I'd like to add the restriction/identity:
eq1=eq2
And, of course, cov(e1,e2)<>0.
But I can't add 'eq1=...' twice (recognized as endogenous by the model specification). The problem is analogous to the demand and supply problem.
Someone has any idea how can I proceed?
Tks in advance!
Fabio
you might try creating a series
Code: Select all
series z = 0
and then adding as an identity in the model
Code: Select all
z=eq1-eq2
But I haven't tried it.
Re: Adding Restrictions/Equation Identity
Yeah. Tks for the idea. I confess that i already thought about it. But it works only 'a little'. The model'll forecast a value to the next steps different than zero (but close to)... So, the two sides will still be different. But I think that's the better until now...
This solution is useful, but in fact is a deterministic restriction 'converted' into a stochastic one, I think.
Tks again anyway!,
Fabio
This solution is useful, but in fact is a deterministic restriction 'converted' into a stochastic one, I think.
Tks again anyway!,
Fabio
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