I'm working on the following sample.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input str6 firm double(fyear earnings) "000001" 2010 339.84 "000001" 2011 268.608 "000001" 2012 89.147 "000001" 2013 -12.965 "000001" 2014 68.098 "000001" 2015 101.776 "000001" 2016 63.47 "000001" 2017 95.495 "000001" 2018 113.39 "000002" 2010 35.457 "000002" 2011 -37.225 "000002" 2012 14.026 "000002" 2013 -49.064 "000002" 2014 -50.071 "000002" 2015 13.386 "000002" 2016 56.673 "000002" 2017 93.248 "000002" 2018 136.921 end
earnings(t+1)=a+w*earnings(t)
In particular, I need to calculate this equation using rolling three-year windows for each firm and each year. For example, to forecast earnings for 2018, one would observe the earnings using data from 2017 and estimate the historical persistence of earnings (given by coefficient w) using data from 2014 to 2017.
How could I do that?
Thanks for the attention.
Daniel
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