Hi, I would like some help on how to predict a house price shock using an ar(2) model in stata. I have 33 local authorities and a timeframe of 14 years.
I would like to find the difference between the actual house prices and what the AR(2) model predicts are considered to be the “house price shocks.”
With the model resembling
With
being the average house price in local authority 
at year 
with 
the error term.
denotes the predicted change in average house prices at the local authority level for each year from 2008-2022.
If anyone could help on how to compute this in Stata that would be great.
I would like to find the difference between the actual house prices and what the AR(2) model predicts are considered to be the “house price shocks.”
With the model resembling
With
If anyone could help on how to compute this in Stata that would be great.
