EViews.com

Hi,

I am going to test the relationship between output gap and inflation rate, I want to whether the increase in output gap and decrease in output gap have the same effect on the inflation rate.

It seems like I need to use the SURE model. However, I have no idea how to define the model in Eviews, can anyone help me with this problem. Many thanks!

Something like

ls inflation c (d(outputgap)>0)*d(outputgap) (d(outputgap)<0)*d(outputgap)

Something like

ls inflation c (d(outputgap)>0)*d(outputgap) (d(outputgap)<0)*d(outputgap)

Hi,

Thanks so much for your reply, I tried the (d(outputgap)>0)*d(outputgap), but I got a wrong result, would you mind to explain it in more detail? could you talk to on MSN? mine is "meety_t@hotmail.com"
Sorry to borther you so much:-)