Scenarios and VAR

[joaopaulocaetano]

Good afternoon. I would ask of you a great help. I am unable to interpret and troubleshoot scenarios. My difficulty is this: I have a VAR with a dependende and two exogenous variable. After running this model, I now make forecasts with it and then ask for the Eviews build a model with these variables. Despois to use the Solver parameter will in scenarios to implement some possible situations. Having three scenarios already defined Eviews, would determine my scenario. Here is I'm having trouble. Like, for example inserting a scenario where one of my exogenous variables register an increase of 10% or a decrease of 10%. How do I enter these conditions? I apologize for posting a question as insignificant, but for me being very difficult to implement. Please find attached the data I'm working to take a peek.
Tank you!

[EViews Gareth]

Which version of EViews?

[joaopaulocaetano]

Eviews 7.0

[EViews Gareth]

It is a little tricky in EV7 (you should update to EViews 7.2 by the way, it is free!).

Here's the rough steps.

• Hit the Scenarios button to bring up the Scenarios dialog.
• Select Scenario 1, then switch to the Excludes tab.
• Enter the name of the exogenous variable you want to make 10% higher in the Excludes box. Hit OK.
• In your workfile create a new series with the same name as the variable you want to make 10% higher, but with an _1 after the name, and make it 10% higher. For example, if you want to make GDP 10% higher, you would type this in the EViews command window:

  Code: Select all

  series gdp_1 = gdp*1.1
• In the model hit the Solve button and make sure that Scenario 1 is the active Scenario. If you want, you can also check the "Solve for alternate" box and have Baseline as the Alternate scenario. Click OK.

[joaopaulocaetano]

My friend, I managed to perform the procedure. Thank you very much for your help and knowledge on the subject. Thank you.