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great thank you.

I replaced beta with beta(-1) and at least I got a result.

I'll keep you posted as I advance

thanks

Yacine

The thing is, if I get rid of beta and gsi, and make the system like this there is no error message. @signal pi = pi(-1)+c(1)*pi(-2)+c(2)*(u(-1)-upotlagged)+c(3)*(u(-2)-upotlagged2)+[var = exp(c(3))] @signal u=upot+ c(4)*(u(-1)-upotlagged)+c(5)*(u(-2)-upotlagged2)+[var = exp(c(6))] @signal y =ypot+c...

Thanks a lot for your quick answer. That seems to do it with the signal equations. Now the only problem that I have is that I had to get rid of the random walks (Beta and Gsi) to have "estimate" working and have no more error message on the state equations. Looks like I can't put a state v...

Dear eviews moderators, my name is Yacine and that's my first post on the forum. I read it regularly (btw it is really helpful), but sorry if my question has already been asked. Please note that I am using Eviews 8 . I'm trying to use the sspace object to estimate a hidden variable (potential GDP) o...