Use the two EViews workfiles with models labelled ‘forward model’ and ‘backward model’ to do the following:

a Examine the model equations by going to ‘view’ and ‘view equations’.

b Follow the steps outlined in the last section of the chapter and replicate the simulations presented there.

c There is also a batch file which runs the simulation for you called ‘model simulation batch file.prg’. Go to ‘file open programme’ and load the batch file into EViews.

Examine the batch file; the comments should explain the steps described above.

Run the batch file and compare the results with the original baseline.