Model simulation with exogenous variables
Posted: Mon Nov 28, 2016 5:49 am
I would like to solve the following system of equations with x1 and x2 being the endogenous variables and z1 and z2 being the exogenous variables, with be_c being the matrix of coefficients estimated my means of a VAR
model sys01
sys01.append X1 = be_c(1,1)*X1(-1) + be_c(2,1)*X2(-1) + be_c(14,1)*Z1 + be_c(15,1)*Z2
sys01.append X2 = be_c(1,2)*X1(-1) + be_c(2,2)*X2(-1) + be_c(14,2)*Z1 + be_c(15,2)*Z2
sys01.solve
How can I inform Eviews that z1 and z2 should be treated as exogenous variables?
Thank you,
Roberto
model sys01
sys01.append X1 = be_c(1,1)*X1(-1) + be_c(2,1)*X2(-1) + be_c(14,1)*Z1 + be_c(15,1)*Z2
sys01.append X2 = be_c(1,2)*X1(-1) + be_c(2,2)*X2(-1) + be_c(14,2)*Z1 + be_c(15,2)*Z2
sys01.solve
How can I inform Eviews that z1 and z2 should be treated as exogenous variables?
Thank you,
Roberto