Adding Restrictions/Equation Identity

[fmramos]

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

[startz]

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.

[fmramos]

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