Forecasting a recession using a probit model. Please help!

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Kashif
Posts: 2
Joined: Mon Jan 10, 2011 9:52 am

Forecasting a recession using a probit model. Please help!

Postby Kashif » Mon Jan 10, 2011 12:09 pm

Hi,

I am quite new to eviews and I am not really econometrically educated.
I have quite a few variables and a US recession indicator indicating 1 for a recession and 0 otherwise.
Now I want to make a predictive model using these variables.
I will add my data in an attachment.
If you are really interested I want to do the same thing as Estrella and Mishkin, 1998 (Predicting US recessions: Financial variables as leading indicators) or more simply as Peter Sephton does in the added PDF file.

Hopefully somebody can help me, I am really stuck.
Attachments
recessionvariables.xls
(1.26 MiB) Downloaded 311 times
Predicting_recessions.pdf
(1.15 MiB) Downloaded 452 times

Kashif
Posts: 2
Joined: Mon Jan 10, 2011 9:52 am

Re: Forecasting a recession using a probit model. Please help!

Postby Kashif » Thu Jan 13, 2011 11:39 am

I found the solution, just run a probit regression. I had done that before and I thought it was wrong, however it wasn't.


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