Switching variable state from exogenous to endogenous
Posted: Mon Mar 07, 2016 7:44 am
Hi,
I am writing a model with the debt dynamics equation. The problem I have is that I need the primary balance (PB) to be exogenous up to where data is available and to be determined within the model thereafter. Unfortunately the model-defined rule does not apply to historical data.
Is there any way to force a model to use actual observations when available and turn the variable endogenous after?
Many thanks for your help
Michele
I am writing a model with the debt dynamics equation. The problem I have is that I need the primary balance (PB) to be exogenous up to where data is available and to be determined within the model thereafter. Unfortunately the model-defined rule does not apply to historical data.
Is there any way to force a model to use actual observations when available and turn the variable endogenous after?
Many thanks for your help
Michele