quadratic trend and linear trend

[chrispusch]

HI all,

please help me estimating the output gap according to following regression equation.
Y(t)= a + b*t+ c * t^2 + u
y is the gdp at time t
t is a time trend i.e. the number of observations
and u is the error term and will be the output gap

I have already estimated the output gap with the help of the HP filter and want to employ this method next, but can not figure out how to get this regression into eviews.
I have 184 estimations of gdp.

thanks in advance for your help.

kind regards
chris

[EViews Gareth]

Which part are you having difficulty with?

[chrispusch]

I understand the equation, but I don't know how to estimate it in eviews.
basically, if I open the window "estimate equation" where would I go from there?

[EViews Gareth]

Enter the name of your dependent variable, followed by

Code: Select all

c @trend @trend^2

[chrispusch]

Thank you Gary, very quick reply and very helpful!!!


If I run the regression, should I use HAC to account for heteroskedasticity and autocorrelation, or is this not necessary in this case?

thanks in advance!