I'm trying to estimate a simple equation: y(t+1) = a + b*x(t)
Can I put "y(1) c x" into the estimate window? so that (1) will automatically mean t+1?
I've tried both "y(1) c x" and "y c x(-1)" to estimate, I get exactly the same output of regression from these two.
But someone told me that it would be wrong to use y(1) for y(t+1), I have to go back one period and estimate the equation using "y c x(-1)".
Can someone explain to me why? If it is wrong, why am I getting the same output for both method?
t+1 in eviews
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EViews Gareth
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Re: t+1 in eviews
y(1) is the correct syntax for a one period lead on Y.
Re: t+1 in eviews
Ok but if i turn ny equation into y = a + b*x(t-1), and estimate using "y c x(-1)",y(1) is the correct syntax for a one period lead on Y.
the intercept and coefficient gotten from this estimate can also be used on the original equation y(t+1)= a + b*x(t) right?
Basically these two equations are the same?
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startz
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Re: t+1 in eviews
They are the same equation, but they may differ by one observation in the data used to estimate them.Ok but if i turn ny equation into y = a + b*x(t-1), and estimate using "y c x(-1)",y(1) is the correct syntax for a one period lead on Y.
the intercept and coefficient gotten from this estimate can also be used on the original equation y(t+1)= a + b*x(t) right?
Basically these two equations are the same?
Re: t+1 in eviews
so the correct input for my original equation will be "y(1) c x"?They are the same equation, but they may differ by one observation in the data used to estimate them.Ok but if i turn ny equation into y = a + b*x(t-1), and estimate using "y c x(-1)",y(1) is the correct syntax for a one period lead on Y.
the intercept and coefficient gotten from this estimate can also be used on the original equation y(t+1)= a + b*x(t) right?
Basically these two equations are the same?
if i remember correctly, few years ago when i first learnt eviews, i was told that eviews does not allow lead on y variables, tat's really strange..
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