Scenario analysis
Posted: Mon Mar 30, 2015 2:38 pm
Hi,
I have a forecasting model y(t+1) = a + b*y(t) + c*x(t) + e(t+1) and want to automate as much as possible inserting alternative paths for y(t) and x(t) to do scenario analyses.
For example, I want to exogenously set y(t+h) and x(t+h), h > 1, equal to some values to see what the model predicts about the future path of y(t+h+1).
What are the commands for constructing this type of scenario analysis?
Thank you.
I have a forecasting model y(t+1) = a + b*y(t) + c*x(t) + e(t+1) and want to automate as much as possible inserting alternative paths for y(t) and x(t) to do scenario analyses.
For example, I want to exogenously set y(t+h) and x(t+h), h > 1, equal to some values to see what the model predicts about the future path of y(t+h+1).
What are the commands for constructing this type of scenario analysis?
Thank you.