Replicating historical observations of a variable

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sirooskhadem
Posts: 22
Joined: Tue Nov 19, 2013 12:23 am

Replicating historical observations of a variable

Postby sirooskhadem » Wed Dec 29, 2021 5:29 pm

Hi all,

I have two variables (a & b) which are almost identical but from two different sources:

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Variable (a) is the one that we are currently using in our models and it goes back to 2010.
Variable (b) is the new one which is more reliable however it only goes back to 2018.

The plan is to use the new variable in our models but we need more observations.

My question is what is the best way to replicate the historical observations for variable (a) based on (b)?

Cheers,
Siroos

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: Replicating historical observations of a variable

Postby startz » Thu Dec 30, 2021 7:44 am

Regress a on b using the overlapping data. Then "forecast" for the earlier period using the observed values of b.


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