include a lower bound in a model

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minijim
Posts: 14
Joined: Sun Dec 20, 2009 10:01 am

include a lower bound in a model

Postby minijim » Thu Jul 28, 2011 12:38 am

Hi,
I would like to know whether it is possible (in EViews6) to include upper or lower bounds in a system of equation, such as :

Code: Select all

Eq1 : series02=F(series04,series05)
Eq2 : series03=F(series06,series07)
Eq3 : series01=@min(1,series02/series03)
(Eq4 : series01=@max(0,series02/series03))

in order to limit the volatility of a variable ?
Thanks in advance

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 12543
Joined: Tue Sep 16, 2008 5:38 pm

Re: include a lower bound in a model

Postby EViews Gareth » Thu Jul 28, 2011 7:44 am

Not quite sure I follow what you're trying to do. Are you wanting to impose coefficient restrictions during estimation?
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minijim
Posts: 14
Joined: Sun Dec 20, 2009 10:01 am

Re: include a lower bound in a model

Postby minijim » Thu Aug 04, 2011 2:40 pm

Thanks for your help Gareth;
In fact I just wanted to be able to correct a series forecast, to take into account for example an arbitrary lower bound (hope this is more clear :) ).
But I think I eventually managed to do what I had in mind, using the "recode" function in my model :

Code: Select all

Eq1 : y=F(y(-1),w,z)
Eq2 : y_0=@recode(y<3,y,3)

Sorry for the lack of explanation in my first post, maybe this one will help others having a similar question :wink:


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