Hi,
First of all I would like to thank you all for this forum....really helpfull
I am using Eviews 6 and i am trying to make an autoregressive equation for inflation.
I am guessing the my model can suffer from structural brakes in intercept and 3rd lag. For this i decided to include a dummy variable. For the 3rd lag it works but for the intercept Eviews says illegal opperation.
My code is:
inf d*c inf(-1) inf(-2) d*inf(-3) inf(-4)
Any ideeas why?
Thx in advance
Include a structural break for intercept
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startz
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Re: Include a structural break for intercept
Since "c" represents a column of ones, try replacing d*c with just d.
Re: Include a structural break for intercept
Thx a lot.
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