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Posted: **Thu Jul 28, 2011 12:38 am**

Hi,
I would like to know whether it is possible (in EViews6) to include upper or lower bounds in a system of equation, such as :

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Eq1 : series02=F(series04,series05)
Eq2 : series03=F(series06,series07)
Eq3 : series01=@min(1,series02/series03)
(Eq4 : series01=@max(0,series02/series03))

in order to limit the volatility of a variable ?
Thanks in advance

Posted: **Thu Jul 28, 2011 7:44 am**

Not quite sure I follow what you're trying to do. Are you wanting to impose coefficient restrictions during estimation?

Posted: **Thu Aug 04, 2011 2:40 pm**

Thanks for your help Gareth;
In fact I just wanted to be able to correct a series forecast, to take into account for example an arbitrary lower bound (hope this is more clear :) ).
But I think I eventually managed to do what I had in mind, using the "recode" function in my model :

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Eq1 : y=F(y(-1),w,z)
Eq2 : y_0=@recode(y<3,y,3)

Sorry for the lack of explanation in my first post, maybe this one will help others having a similar question

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include a lower bound in a model

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