Hi

I'm replicating a paper, which modelled the NAIRU like this:

equation 1 says output is equal to a tendency, h, and a cycle, x. Eq 2 says the tendency is explained by a tendency also, g, and a random error.

Eq 3 explains that tendency g. Eq4 says the cyclical component of output is defined by an AR(2). Eq 5,6,7 have similar explanations. Forget equation 8, i made a mistake repeating that one.

So, i'm a bit lost declaring the model under Kalman filter

The first matrix is the state, the second one the transition or signal

So how i do declare the state and space under Eviews? I've read example but nothing useful. Multiplying the matrix that generates the states i get

@state y=h+x

@state u=c(1)*x+ c(2)*x(-1)+ c(3)*x(-2)+ s+[var = exp(c(4))]

@signal h=h(-1)+g(-1)+[var = exp(c(5))]

@signal x=c(6) x(-1)+c(7) x(-2)+[var = exp(c(4))]

@signal x(1)=x(-1) //@signal sv2=sv1(-1)? i don't know how to express this correctly.

@signal s=s(-1)+[var = exp(c(8))]

@signal g=g(-1)+[var = exp(c(9))]

Please, give some help. I'm not used to work with Kalman filter. Thanks in advance for your time and interest.