Autoregressive process in eViews: How to do it? Etc...

[LeonWalras]

Hello everyone,

I want to estimate this model assuming the errors are autoregressive of order 1. How exactly would I go about doing it on eViews 8.0?

Furthermore, every time I enter this equation into eViews 8.0, I keep being told that eViews is "unable to normalize this equation". What does that mean and how do I get around it? For what it's worth, I am typing the following (not sure if I should type it differently or not): ln(u)=c(1)+c(2)*ln(u)

Best wishes,
Leon

[trubador]

For a proper introduction to the software and basic understanding of its features, I suggest you to go over (at least the first few chapters of) EViews Illustrated and EViews Users Guide:

1) EViews does not have a function called "ln". You should use "log" instead.
2) I think ln(u) = c(1) + c(2)*ln(u) should be replaced with log(jv) = c(1) + c(2)*log(u)

[LeonWalras]

For a proper introduction to the software and basic understanding of its features, I suggest you to go over (at least the first few chapters of) EViews Illustrated and EViews Users Guide:

1) EViews does not have a function called "ln". You should use "log" instead.
2) I think ln(u) = c(1) + c(2)*ln(u) should be replaced with log(jv) = c(1) + c(2)*log(u)

Thank you for your help. I have tried this and eViews keeps telling me that there are an "insufficient number of observations". It seems as if eViews wants to give me as much headache as possible :(

[trubador]

Could you please post your workfile?

[LeonWalras]

Could you please post your workfile?

Yes, certainly.

[trubador]

I am not sure what you are doing exactly, but if you follow the steps as depicted in the picture attached then you should get the results. Otherwise, there might be a some sort of bug in the demo version.

[LeonWalras]

Thank you. Let me try this.

[LeonWalras]

Yes, I think there must be a bug in the demo version of eViews 8.0 because it is still not working for me: "Insufficient number of observations". I have done exactly as you have described, so there is a deeper problem.

[LeonWalras]

I am not sure what you are doing exactly, but if you follow the steps as depicted in the picture attached then you should get the results. Otherwise, there might be a some sort of bug in the demo version.

Is it possible for you to attach the Equation file please?

Thank you

[EViews Gareth]

The demo version and the full version are identical. You must be doing something different from shown.