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Using adstock concept in Eviews regression

Posted: Thu Jan 09, 2014 5:29 pm
by Hodgson1
Is Eviews regression module able to auto apply "adstocks" to independent "media investment" variables. For example media investment may appear in period 1 but may potentially continue to have a linear diminishing impact (adstock) on the dependent variable in periods 2, 3 and so on. Is Eviews able to identify the most appropriate adstock for such media investment variables ?

Re: Using adstock concept in Eviews regression

Posted: Fri Jan 10, 2014 3:17 am
by trubador
No, not automatically. But it is pretty straightforward to generate the variable. All you have to do is decide the functional form of the decay effect. Since you ask for the most appropriate adstock variable, it would be better to experiment for alternative specifications.