Composite error term

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csys
Posts: 6
Joined: Fri Aug 14, 2009 7:47 am

Composite error term

Postby csys » Fri Aug 14, 2009 7:57 am

Hello,

In regard of my research I am working with EViews - 6 for the first time.
Can anybody help me with the following question 'how can I distangle a composite error term in EViews?'
Or can anybody give me directions where to find how to do it
Thanks in advance
C.S.

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: Composite error term

Postby startz » Fri Aug 14, 2009 8:34 am

What's a "composite error term?"

csys
Posts: 6
Joined: Fri Aug 14, 2009 7:47 am

Re: Composite error term

Postby csys » Fri Aug 14, 2009 9:57 am

I need to estimate a translog production function.
A composite error term consists of statistical noise, vi (~iidN) and systematic time-varying departures,
The disturbance term ε = vi−ui
Now I need to distangle ε to estimate x-efficiency...

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: Composite error term

Postby startz » Fri Aug 14, 2009 10:00 am

EViews makes it easy to model the total error term as ARMA, which gives a predictable part and a noise part, but I'm not at all sure if that's what you want.

csys
Posts: 6
Joined: Fri Aug 14, 2009 7:47 am

Re: Composite error term

Postby csys » Fri Aug 14, 2009 10:17 am

As I am a first user of EViews, I need first to look up 'ARMA'
Now I can estimate the translog function. I obtain RESID
If i understand the theory good, I now need to distangle RESID into the two components.
Because I need to work further with vi
If ARMA is the technique, I need first to try this
Thanks I hope this will solve my problem

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: Composite error term

Postby startz » Fri Aug 14, 2009 10:24 am

To get started, choose index in the help file and click on AR terms.

Favouredchild
Posts: 1
Joined: Thu Sep 03, 2009 6:07 am

Interpreting VEC estimates

Postby Favouredchild » Thu Sep 03, 2009 6:22 am

I am new on Eviews 6 and I dont know what to make of the result I just got. What does the pasted copy below tell me about the relationship between the two variables. Urgent help need please.
Vector Error Correction Estimates
Date: 09/01/09 Time: 18:17
Sample (adjusted): 1972 2007
Included observations: 36 after adjustments
Standard errors in ( ) & t-statistics in [ ]


Cointegrating Eq: CointEq1


ENERGY_CON(-1) 1.000000

GDP(-1) -0.086484
(0.03186)
[-2.71438]

C -693.6977


Error Correction: D(ENERGY_CON) D(GDP)


CointEq1 -0.216473 -1.268542
(0.05616) (0.43699)
[-3.85438] [-2.90289]

C 2.739333 26.41963
(1.88657) (14.6791)

trubador
Did you use forum search?
Posts: 1520
Joined: Thu Nov 20, 2008 12:04 pm

Re: Interpreting VEC estimates

Postby trubador » Thu Sep 03, 2009 6:53 am

I am new on Eviews 6 and I dont know what to make of the result I just got. What does the pasted copy below tell me about the relationship between the two variables. Urgent help need please.
If you do a simple search in the forum, you'll find numerous explanations on similar cases like this one.


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