Include a structural break for intercept
Posted: Sat Apr 02, 2011 4:16 am
Hi,
First of all I would like to thank you all for this forum....really helpfull
I am using Eviews 6 and i am trying to make an autoregressive equation for inflation.
I am guessing the my model can suffer from structural brakes in intercept and 3rd lag. For this i decided to include a dummy variable. For the 3rd lag it works but for the intercept Eviews says illegal opperation.
My code is:
inf d*c inf(-1) inf(-2) d*inf(-3) inf(-4)
Any ideeas why?
Thx in advance
First of all I would like to thank you all for this forum....really helpfull
I am using Eviews 6 and i am trying to make an autoregressive equation for inflation.
I am guessing the my model can suffer from structural brakes in intercept and 3rd lag. For this i decided to include a dummy variable. For the 3rd lag it works but for the intercept Eviews says illegal opperation.
My code is:
inf d*c inf(-1) inf(-2) d*inf(-3) inf(-4)
Any ideeas why?
Thx in advance