Page 1 of 1

Diferences in AR(1) equation

Posted: Mon Aug 01, 2011 6:09 pm
by Maxen
Hi,

Suppose my time serie's name is "month"

What is the deference between

1) month c month(-1)
2) month c ar(1)

The question is because when I estimate both equations, the c obtained in 1) is different the one obtained in 2)

(EVIEWS 6)
Thanks in advance
Xavier

Re: Diferences in AR(1) equation

Posted: Mon Aug 01, 2011 6:21 pm
by startz

Re: Diferences in AR(1) equation

Posted: Thu Aug 04, 2011 4:15 pm
by Maxen
Thaks startz!

If I understood, the right way [always] to estimate the coeficient of an AR(1) model w/constant in EVIEWS to use for forecasting is

y c y(-1)

Is that right?

Thanks
Xavier

Re: Diferences in AR(1) equation

Posted: Thu Aug 04, 2011 4:21 pm
by EViews Gareth