Hi,
I tried to use triangular approach to estimate Nairu. I constructed a state space model according to Gordon 1997.
However I encountered a syntax error msg while estimating my model. Can someone help? Thanks. Here is my model below:
@signal inflation_rate =c(1) + c(2) * inflation_rate(-1) + c(3) * ue_gap + c(4)* imp_price + c(5) * food_energy + [var = exp(c(1))]
@signal u_rate = ue_gap + nairu
@state nairu = nairu(-1) + [var = exp(c(6))]
param c(1) .0 c(2) .0 c(3) .0 c(4) .0 c(5) .0 c(6) .0
State space estimation Syntax error
Moderators: EViews Gareth, EViews Moderator
Re: State space estimation Syntax error
I think, ue_gap should be a state variable as well. In that case, you have to define its dynamics separately. We had similar discussion on this model before, please refer here for more information: http://forums.eviews.com/viewtopic.php?f=4&t=4366
Please also note that constant and variance have the same coefficent, c(1), in your first signal equation. This will probably lead to estimation problems.
Please also note that constant and variance have the same coefficent, c(1), in your first signal equation. This will probably lead to estimation problems.
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