Time varying coefficient model

[Tjiftjaf]

Dear people,

We are two students who were given the privilege to work one month for Prof. Dr. Meersman at the University of Antwerp. Our task is to estimate models forecasting the the total amount of freight transport in certain European countries using time-series.

One of the explanatory variables we want to use is the GDP. The relationship between GDP and transport, however, has been changing over time (we have data starting from 1970). We think a time varying coefficient model might therefore be appropriate. So we want to create a model (possibly an error-correction model) with a time-varying coefficient for GDP. It is, however, not clear to us how this can be done in Eviews. Research on this forum and on the internet hasn't taught us yet how this can be done.

We would appreciate is very much if someone could help us.

Many thanks in advance,

Pieter en Arne
Student researchers @ university of Antwerp