## Static y forecast with out of sample x's

For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.

Moderators: EViews Gareth, EViews Moderator

Dave_maccer
Posts: 3
Joined: Wed Apr 04, 2018 2:08 am

### Static y forecast with out of sample x's

Hi there.

I am trying to forecast forward y by 12 quarters based on a single ols equation. I have assumed values for my independent variables for the out-of-sample 12 quarters period, so am trying to do a static forecast. This only allows me to forecast out 4 quarters, obviously using actual lagged values of my independent variables in my regression, and stopping at the end of my sample
.
Is there a way of using my assumed values of independent variable as, in effect, actual values to roll forward a static forecast of y? Essentially I am trying to forecast y based on future scenarios of x

Many Thanks

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 12371
Joined: Tue Sep 16, 2008 5:38 pm

### Re: Static y forecast with out of sample x's

Static vs Dynamic has nothing to do with whether values of X are actual or not. It is just whether you use actual or forecasted values of Y.

Dave_maccer
Posts: 3
Joined: Wed Apr 04, 2018 2:08 am

### Re: Static y forecast with out of sample x's

Got it, thanks. Does that mean creating new variable, y2, and adding in forecasted values of y, or is there a neater way of doing that within the forecast function in my original equation? Apologies for the dumb questions.

Dave_maccer
Posts: 3
Joined: Wed Apr 04, 2018 2:08 am

### Re: Static y forecast with out of sample x's

You'll probably guess I have lagged values of y as independent variables, hence the limit on my initial forecast to 4 quarters out.

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 12371
Joined: Tue Sep 16, 2008 5:38 pm

### Re: Static y forecast with out of sample x's

Don't really understand the question.

If you tell EViews to do a static forecast, EViews will use the values inside the Y series over the forecast period.

If you tell EViews to do a dynamic forecast, EViews will use the forecasted values of Y over the forecast period.