Parameter consistancy?

[Bertjan]

In our assignment we are doing tests if the Fisher equation holds. However, our supervisor asked us to test for parameter consistency. However we have no clue how to do it.

Our equation is = I = A + BetaP + e

In which A is a parameter defined by eviews and the rest are timeseries we know. Now we have to do a test on A, how should we do that?

Thanks in advance

Bertjan van den Berg
Student Economics
Groningen, The Netherlands

[trubador]

There are several built-in diagnostic tests in EViews for that purpose. However, I think the point here is more than just simply checking the parameter consistency. It seems you are also expected to do some research on the concept and to become familiar it before implementing. It would be very helpful, if you referred to standard econometrics textbooks.