How to find optimal breakpoint in Segmented (piecewise)?

[goldman1804]

Hi,

I have an x and y variable who seem to be strongly linked until my x variable goes above a certain number, where the relationship breaks down (a breakpoint), and a new relationship begins (curve is much less steep). Is it possible to find the optimal breakpoint using EViews? And if so how would I go about doing it.

Thanks!

[EViews Gareth]

There are many breakpoint tests, and some breakpoint estimation techniques in EViews 8. Probably the best place to start is to look up "breakpoint" in the User Guide index.

[goldman1804]

When using the Quant-Andrews test when it asks what variables do you wish to vary across the breakpoint - what is the effect of using your x variable and a constant vs just your x variable? It seems to change the result substantially, but I cant figure out which one is correct

[EViews Glenn]

The latter constrains the intercept to be the same across regimes.