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Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 2:42 pm
by eavelas
Will the model object compile and/or solve if there is an identification problem?

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 2:52 pm
by EViews Gareth
What do you mean by identification problem?

Identification problems are usually terms reserved for estimation, and the model object does not perform any estimation.

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 2:56 pm
by eavelas
Sorry, to clarify, would the model object encounter any error if any of the underlying equations possess a problem with identification?

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 3:12 pm
by EViews Gareth
If the equations/systems/vars etc... have identification problems, they would not have been successfully estimated. A model object will only solve if the underlying estimation objects have been successfully estimated.

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 4:00 pm
by eavelas
Thanks. Does EViews provide any warning if a user attempts to estimate an equation that has identification problems? If so, is there anywhere in the EViews user guide or help menu that explains that EViews does this?

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 4:03 pm
by EViews Gareth
Again it depends on exactly what you mean by non-identification.

Most of the time non-identification means it is mathematically impossible to estimate the thing you're estimating, so EViews will issue a warning message (such as singular matrix, or not enough instruments, etc...)

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 4:07 pm
by eavelas
Thanks. Last question: Is this warning functionality described in any EViews documentation?

Re: Will model compile/solve without just identification?

Posted: Tue Oct 06, 2015 4:40 pm
by EViews Gareth
Probably. Without knowing what identification issues you're talking about, it is hard to say.

Both singular matrix errors and insufficient instruments are mentioned in the documentation.