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Dynamic Forecasting

Posted: Thu Jul 28, 2011 9:36 am
by marcounam
Hello:

How can i do a dynamic forecasting of an equation of the form: Y_t=a+bX_t +Y_t-1? I have an equation like that and i want to do a dynamic forecast but the eviews options in the forecast button says: Static Forecast(no dynamics in equation) and doesnt give me the option of a dynamic forecast.

Re: Dynamic Forecasting

Posted: Thu Jul 28, 2011 9:50 am
by EViews Gareth
EViews will only offer dynamic forecasting if there are dynamics in the equation. You don't say how you specified your equation, but EViews doesn't believe you have dynamics in it.

Re: Dynamic Forecasting

Posted: Thu Jul 28, 2011 10:10 am
by marcounam
Thanks for your answer. Here is my workfile so you can see the equations. What i dont understand is why eviews doesnt believe i have dynamics when there is a Y_t-1 in the right hand side of the equation?

Re: Dynamic Forecasting

Posted: Thu Jul 28, 2011 10:36 am
by EViews Gareth
EViews isn't picking up the @qnorm properly. Probably best to create a temporary variable equal to the @qnorm, then use that in the equation.