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operation for future series

Posted: Thu Jul 24, 2014 6:20 am
by diggetybo
Hello,

I'm looking to estimate future (expected) values of data.

Suppose my series is labeled X, and the future value is at the period of t+1, that is simply:

Et{Xt+1}

Lagging X, the command is x(-1)

would future expected value be x(+1)?

The point is to account for forward-looking behavior, and in many econometric papers, the professionals denote expected values as such. What no one has explained to me yet is if this can simply be preformed by a simple data manipulation or if contemporaneous data that is shifted ahead by t+1 is just arbitrary and unrelated to "expected values"

If the answer isn't black and white, I'll gladly take a grey answer,

Please advise,

and thanks a lot as always

Re: operation for future series

Posted: Thu Jul 24, 2014 6:41 am
by startz
X(1) is the actual future value, not the expectation.

Re: operation for future series

Posted: Thu Jul 24, 2014 7:33 am
by diggetybo
That's what I suspected, so expectation of values lies more in theory, eviews can't read minds, am I right in this distinction?

Re: operation for future series

Posted: Thu Jul 24, 2014 7:36 am
by startz
That's what I suspected, so expectation of values lies more in theory, eviews can't read minds, am I right in this distinction?
You put it perfectly.