regressors with fixed coefficients versus recursive coefficients

[saranya]

Hi,

Can anyone please throw some light on the two options - regressors with fixed coefficients versus recursive coefficients available in state space modelling within EViews? some examples on how to classify your variables into regressors with fixed coefficients and recursive coefficients.

Thanks in advance,
Saranya

[saranya]

For instance, if my equation is as follows: Can you please specify which component is part of fixed and which is part of recursive?

Xt = b1.Xt-1 + (1-b1).(( Xt-2 + Xt-3 + Xt-4)/3) + b2.Yt-1 – SV1.Y[*]t-1

Here I will put Xt in the dependent variable with AR =1 , but for the rest of the variables, can you please help me in identifying how to put them into the right sections.