Hello. I want to estimate a nonlinear model (Smouth Transition regression STR) to model an augmented nonlinear Taylor rule.
The problem is that in the theoretical model, a coefficient called "RHo" must be attached to the variable "i (-1)" and another called (1-Rho) must be attached to the variable "r" .
How can I make this happen in the Eviews software? Knowing that I do not have the hand to write the coefficients (C (1), C (2), C (3), ...) as in the case of OLS. In STR, it is allowed to write just the variable to be explained followed by the explanatory variables and to add @alt (var) to show that the variables in parentheses are just in the nonlinear part. If we let the software calculate the coefficients it will give a coefficient attached to "r" which is different from (1-Rho) which is not compatible with the theory.
variable to explain: i
explanatory variable: i (-1), r, Inf_gap, Y and Y * Q
Thank you. I am really stuck in work.
For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.
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