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