Model solver producing inaccurate results
Posted: Wed Apr 07, 2021 11:49 am
Hello,
I'm solving a very small (but complex) model and get inaccurate results.
What I mean by "inaccurate" is that the solution for the endogenous variable does not match the equation in the model.
For example, let's say the model equation has:
X = 2*Y +3*B
then X_0 does not equal to 2*Y+3*B
(assuming Y and B are exogenous variables)
I am very experienced using EViews models, so it's unlikely that I'm missing something obvious. EViews displays no convergence problems.
Very important point: the model contains forward-looking terms, including for the main endogenous variable. This is most likely the key source of the problem. I could provide a workfile if requested, but privately.
Any suggestions would be greatly appreciated.
I'm solving a very small (but complex) model and get inaccurate results.
What I mean by "inaccurate" is that the solution for the endogenous variable does not match the equation in the model.
For example, let's say the model equation has:
X = 2*Y +3*B
then X_0 does not equal to 2*Y+3*B
(assuming Y and B are exogenous variables)
I am very experienced using EViews models, so it's unlikely that I'm missing something obvious. EViews displays no convergence problems.
Very important point: the model contains forward-looking terms, including for the main endogenous variable. This is most likely the key source of the problem. I could provide a workfile if requested, but privately.
Any suggestions would be greatly appreciated.