I am looking for help on how to estimate a Smooth Transition Regression for a monetary policy rule. In the setup there are two different regimes, and the policy rules in any one period is a weighted average of those two rules. I am looking for just one switch in the model.

The model is as follows:

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`i = (1-w)*(c(1) + c(2)*inflation + c(3)*outputgap) + w*(c(4) + c(5)*inflation + c(6)*outputgap))`

with

w = (1 + exp(-c(7)*(t - c(8))))^-1

0 ≤ w ≤ 1

The t stands for a time trend. Now one major problem I have is, I don't know how to model this time-trend in eviews so that c(8) will give me the switching date (or observation).

Also I am not sure how to estimate this in eviews in general. I tried following the advice from this topic, viewtopic.php?f=4&t=3712 , and with exchanging t with a lagged observation of i (=interest rate), but I only received non-significant and nonsensical coefficients.

Any help would be appreciated.