Dynamic Forecasting

[marcounam]

Hello:

How can i do a dynamic forecasting of an equation of the form: Y_t=a+bX_t +Y_t-1? I have an equation like that and i want to do a dynamic forecast but the eviews options in the forecast button says: Static Forecast(no dynamics in equation) and doesnt give me the option of a dynamic forecast.

[EViews Gareth]

EViews will only offer dynamic forecasting if there are dynamics in the equation. You don't say how you specified your equation, but EViews doesn't believe you have dynamics in it.

[marcounam]

Thanks for your answer. Here is my workfile so you can see the equations. What i dont understand is why eviews doesnt believe i have dynamics when there is a Y_t-1 in the right hand side of the equation?

[EViews Gareth]

EViews isn't picking up the @qnorm properly. Probably best to create a temporary variable equal to the @qnorm, then use that in the equation.