Estimating the FED implicit inflation target: A state space approach

[anissb]

Hi,

I'm trying to replicated the model attached. https://www.sciencedirect.com/science/a ... 890700190X

However, I'm do not know how to specify the variance for the state and the signal in Eviews for a giving lamda value.
Moreover, can I set the first value of the RW to a certain value in Eviews (for example 2%) for the first observation of the sample?

Can anyone suggest how it can be done in Eviews?

Thank you,

anissb