Dear Statalist users:
I have time series data and would like to use levels of one variable
(X) to forecast changes in another variable (Y) over multiple periods.
In other words, I want to estimate something like the following
equation:
Yt+k - Yt = b*Xt + error,
where k>1.
It looks like the "arima" command and "predict" postestimation do
something similar, but based on my reading of the Time Series manual
they only calculate one-step-ahead forecasts. I would like to use the
actual value of Xt to forecast changes in Y over longer periods (k).
I would appreciate any advice you may offer. Thank you!
Erika (first time poster, frequent reader)
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