Question: The EViews file Spreadss and GDP gives data on the following variables for France, over the period 1997m01 to 2013m12: catogdp_fr: the ratio of the

The EViews file ‘Spreadss and GDP’ gives data on the following variables for France, over the period 1997m01 to 2013m12: catogdp_fr: the ratio of the current account balance to GDP. dgdp_fr: the monthly percentage change in GDP. oilp: the world oil price. sp_fr: the spread between French and German government bonds. Estimate a time varying parameter model to uncover the biased free relationship between the government bond spread and the change in GDP.

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