Generating a capital stock within model object
Posted: Fri Apr 01, 2016 12:29 am
Dear all,
I would like some help with creating a capital stock within the Eviews 8 model object. I do have an estimate for the initial capital (K_0). How can I command Eviews (as an identity in the model object) to consider this first observation and then generate a capital stock series using the perpetual inventory method with a constant depreciation rate? Consider:
K = capital stock
I = fixed capital formation
d [delta] = 0.026
The evolution of the real capital stock is:
K_t+i = (1 - d)*K_t+i-1 + I_t+i
I have been struggling with the CUMSUM function but to no avail.
Thanks very much for your answer.
I would like some help with creating a capital stock within the Eviews 8 model object. I do have an estimate for the initial capital (K_0). How can I command Eviews (as an identity in the model object) to consider this first observation and then generate a capital stock series using the perpetual inventory method with a constant depreciation rate? Consider:
K = capital stock
I = fixed capital formation
d [delta] = 0.026
The evolution of the real capital stock is:
K_t+i = (1 - d)*K_t+i-1 + I_t+i
I have been struggling with the CUMSUM function but to no avail.
Thanks very much for your answer.