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Forecasting with the ls2003.mod file

PostPosted: Fri Feb 01, 2008 10:07 pm
by rangangupta
I have been trying to generate forecasts with the ls2003.mod files available on the web. My problem is that I get zero values for the forecasted variables. Is this because the model is linearized and the steady-state value for all the variables are computed to be zero?

What is the way round this? Your help would be highly appreciated.

A related question is: How can I generate forecasts recursively, that is estimating the model continuously by adding one observation at a time over the forecasting horizon?

Thanks

Rangan