Hello Gareth and all
Im using EViews 7 and trying to solve a model with 10 stochastic eqs and 17 identities...ive estimated the 10 eqs by 2sls but when solving the model i get
2002Q4 NA generated for Y_SA - Log of non positive number
Solve terminated - Log of non positive number
i really dont know whats going on... (i can post the workfile if necessary)
Thanks a lot
aam
SEM solving
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- Fe ddaethom, fe welon, fe amcangyfrifon
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Re: SEM solving
Hello! ive attached the workfile........when i solved the model without gelr/(py_sa/100) in eq 13, it works fine......i really dont know
thanks in advance!!
aam
thanks in advance!!
aam
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- cec_trimestral.wf1
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- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13319
- Joined: Tue Sep 16, 2008 5:38 pm
Re: SEM solving
There isn't much to say.
Equation 4 specifies that Y_SA is a function of DLOG(X), i.e. Y_SA = log(X)-log(X(-1)).
If X goes negative, this will result in an error since you can't take the log of a negative number. The model converges to a position where X goes negative.
Equation 4 specifies that Y_SA is a function of DLOG(X), i.e. Y_SA = log(X)-log(X(-1)).
If X goes negative, this will result in an error since you can't take the log of a negative number. The model converges to a position where X goes negative.
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Re: SEM solving
i had everything in millions of pesos from 2004 and the variable i added for the simulation not.........so that was making x (effective demand) negative.............sorry for troubling you and thanks a lot!!!
agustin
agustin
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