Page 1 of 1

Autoregressive models

Posted: Thu Jan 19, 2012 5:37 am
by PMaier
Hi,

I have a questions about autoregressive models.

The model

Y(t) = c0 + c1*X(t-1) + e(t)
e(t) = c2*e(t-1) + u(t)

can be estimated in EViews (I'm using 7.2) as

y c x(-1) AR(1).

But how would I estimate a model specified as follows:

Y(t) = c0 + c1*X(t-1) + e(t)
e(t) = c2*e(t-1) + c2*s(t) + u(t)

with s(t) being some other, predetermined variable?

Many thanks,

Philipp

Re: Autoregressive models

Posted: Thu Jan 19, 2012 7:35 am
by startz
You might look at setting this up as a state-space model.