Generate long-run forecasts
Posted: Tue Oct 10, 2017 3:51 am
Hi,
I have a very basic question. I estimated a DOLS and FMOLS equation and would like to generate a long-run forecast using the coefficients. This is before building an error-correction model.
I proceed by using Proc > Forecast however I noticed that the series generated is very different (much larger) from my manual calculation using the eviews command genr y=c(1)*x1+c(2)*x2+...
Why is this so? What is the Proc > Forecast function calculating then?
Thanks
I have a very basic question. I estimated a DOLS and FMOLS equation and would like to generate a long-run forecast using the coefficients. This is before building an error-correction model.
I proceed by using Proc > Forecast however I noticed that the series generated is very different (much larger) from my manual calculation using the eviews command genr y=c(1)*x1+c(2)*x2+...
Why is this so? What is the Proc > Forecast function calculating then?
Thanks