Help with regression - new user

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kikidee
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Joined: Thu Mar 31, 2011 12:51 pm

Help with regression - new user

Postby kikidee » Fri Apr 01, 2011 2:20 pm

I'm trying to do econometric tests to see if the forward exchange rate is a predictor of the future spot rate but am not entirely sure of how to do this in eviews. MY data is the spot GBP/USD and forward 1,3 & 12 month rates (forward rates in separate files); and my estimate equation is log(spot) c log (forward).

I am not sure if I have specified my model correctly, do I need to include any more variables?

I also need to test for serial correlation and cointegration - 1) I am not sure how to interpret my results and 2) not sure how many lags to include for either test - can anyone help me with this?

Assuming the results are positive for both serial correlation and cointegration, how can I modify my model to account for this and interpret the results correctly?

I'm using Eviews 7. Thank you!

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