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Tranforming double difference forecast to absolute values
Posted: Mon Aug 19, 2013 1:18 pm
by Papai13
I am forecasting a deposit series. The deposit data and the explanatory variables in the model became stationary after differencing twice [i.e., I(2)]. The forecasted values obtained correspond to the double difference of the deposit data series. My question is the following: How can I transform the double difference forecast to absolute values in EWIEWS? I have EVIEWS 8.
I AM USING EVIEWS 8. I CANNOT FIND A WAY TO TRANSFORM THE DATA IN EVIEWS 8.
Re: Tranforming double difference forecast to absolute value
Posted: Mon Aug 19, 2013 1:40 pm
by EViews Gareth
Assuming you are using the differenced variable as your dependent variable in an equation (i.e. you have D(Y,2) as your dependent), then EViews will automatically forecast the de-differenced value.
Re: Tranforming double difference forecast to absolute value
Posted: Mon Aug 19, 2013 2:08 pm
by Papai13
The equation I specified is:
ddbankdepo c ddbankdepo(-1) ddrealgnp ddcpi
Re: Tranforming double difference forecast to absolute value
Posted: Mon Aug 19, 2013 2:32 pm
by EViews Gareth
Don't specify it that way. Assuming you have a variable called BANKDEPO, specify it as:
Code: Select all
d(bankdepo,2) c d(bankdepo(-1),2) d(realgnp,2) d(cpi,2)
Re: Tranforming double difference forecast to absolute value
Posted: Tue Aug 20, 2013 6:27 am
by Papai13
Thank for your help, Gareth.