Simultaneous Equation with non-observable variable

[ys1980]

I have 2 independent variables (assume R1 R2, respectively) which are my sample data.
I want to estimate simultaneously 3 equations as follows (the 3th variable called R3 is non-observable):
Log(R3)=c(1)*R3(-1)+ c(2)*R3(-2)+ c(3)*R3(-3)
R1=c(4)*R3+c(5)*resid(-1)
R2=c(6)*R3+c(6)*resid(-1)

1.How can I run these equations at eviews?
2.How can I define the residual for each equation (in my question, there are to residual derive from each equation?

Thanks

[trubador]

1.How can I run these equations at eviews?

You can use "State Space Object". R1 and R2 are your signal variables, whereas R3 is your state variable. Please see the manual for details.

2.How can I define the residual for each equation (in my question, there are to residual derive from each equation?

Code: Select all

eq1.makeresids res1 eq2.makeresids res2

[ys1980]

can you please write me down the code for these equations?
where do I need to write it? should I need to create 3 equations?

[startz]

1. You should begin by taking a look at Chapter 33 of the online user's guide.
2. Are you sure you've read your homework assignment correctly? Those are odd looking equations unless there is more information that you've left out.

[ys1980]

this is a part of leading indicator model which is quite difficult to understand, it's not homework

[startz]

The model appears to not be identified, unless there are some further conditions. Suppose all R3 doubled and c(3) and c(4) were cut in half.