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Estimating a FDL(4) Model

Posted: Sun Sep 23, 2012 2:21 am
by truetears
Hi guys, attached is the eviews file. The 4 series are defined as follows:

cpi_t Consumer Price Index
gdp_t Quarterly Australian GDP in current prices, $million
hpi_t House Price Index, weighted average for the 8 capital cities
mort_r_t Average nominal bank mortgage rate, %

Each of the series contains quarterly data series from Dec 1987 to Dec 2008.

Now I want to estimate a FDL(4) model of ln(hpi_t/cpi_t) on mort_r_t. My question is, after I run the regression, is every time period in quarters of a year? Ie, if I define the first observation in the series mort_r_t to be t = 0, then would t = 0 to t=1 be a quarter of a year? that is, t = 0 is 1987 Q4 and t = 1 is 1988 Q1, so 3 months has passed?

Or is it that each time period is always a year apart?

Thanks!

Re: Estimating a FDL(4) Model

Posted: Sat Oct 13, 2012 2:18 am
by mambwe
hi i have the same assignment with the same data and i am lost on how to estimate an equation explaining log real house prices (i.e. ln(hpit/cpit)) with an FDL(4) for mortgage rates. please assist me if you managed.