Dear Abdur,

did you check the EViews help? I think the MS model estimation to be nicelly described in there.

http://www.eviews.com/help/helpintro.html#page/content/switching-Estimating_Switching_Regressions_in_EViews.html

If you'd have any problems regarding the estimation (or interpretation of the results), ask away.

Martin

PS. By taking a look at your model specification, try to think about adding a lag value of GDP on the right side of the equation to avoid endogenity issue.

http://homepage.ntu.edu.tw/~ckuan/pdf/Lec-Markov_note.pdf

Hi,

This might help you

https://www.youtube.com/watch?v=TGQeGaJY9cA

I think that it is not the best way to compute Markov-Switching models. I think Matlab is perfect since you will can write all code by yourself. If you can not do it alone you can try to use some "black box " program such Stata ...

Oxmetrics has some MS modelling functionality built into PCGIVE.

Hello dear I am very happy to read the questions and find the answers