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Dear EViews Team,

I use EViews 8

I have been attempting to forecast commodity Prices based off of exchange rate0 movements using this formula:
∆cpt+1=β0+β1∆st+ε
where ∆cpt+1= change in commodity price at time t+1, the first beta is a constant and the second beta is the coefficient and is multiplied by ∆st = the change in currency at time t with ε being the error term.
I have been inputing into the estimate equation field:
log(cp) c log(curr(-1)) log(curr)
and have gotten strange results. I figure that I must be doing something wrong in terms of my inputs into the estimate equation field and was hoping that you may have a suggestion on what can fix the issue.

Thank you

Dear EViews Team,

I use EViews 8

I have been attempting to forecast commodity Prices based off of exchange rate0 movements using this formula:
∆cpt+1=β0+β1∆st+ε
where ∆cpt+1= change in commodity price at time t+1, the two betas are constants, and ∆st = the change in currency at time t with ε being the error term.
I have been inputing into the estimate equation field:
log(cp) c log(curr(-1)) log(curr)
and have gotten strange results. I figure that I must be doing something wrong in terms of my inputs into the estimate equation field and was hoping that you may have a suggestion on what can fix the issue.

Thank you

Your equation specifies the change in cp, but your EViews command specifies the log. Perhaps you want

Would you think then that I should also include the dlog for the currency as well as the equation also specifies the change in the currency?
dlog(cp) c log(curr(-1)) dlog(curr)

You can, but it won't make any difference as you already have current and lagged log currency.

I apologize for the incompetence, I have recently begun using the program. I do find a difference when I Input a dlog or just a log for the currency. Would the equation begin written as so make a difference?:
dlog(cp) c log(curr(-1))+dlog(curr)

Also, when I Input the equation, would the C coefficient be equivalent to my beta 0 and would the other coefficient be beta 1?

Thank you for your help, and once again I apologize for the simplicity of the questions.

I apologize for the incompetence, I have recently begun using the program. I do find a difference when I Input a dlog or just a log for the currency. Would the equation begin written as so make a difference?:
dlog(cp) c log(curr(-1))+dlog(curr)

dlog(x) is defined to mean log(x) - log(x(-1))

Also, when I Input the equation, would the C coefficient be equivalent to my beta 0 and would the other coefficient be beta 1?

That's right.

Thank you, that seems to have done the trick. The results are more representative of what I thought they should be.