SEM solving

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aam
Posts: 3
Joined: Mon Oct 10, 2016 10:49 am

SEM solving

Postby aam » Mon Oct 10, 2016 12:10 pm

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

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 11299
Joined: Tue Sep 16, 2008 5:38 pm

Re: SEM solving

Postby EViews Gareth » Mon Oct 10, 2016 12:57 pm

You will need to provide the workfile.
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aam
Posts: 3
Joined: Mon Oct 10, 2016 10:49 am

Re: SEM solving

Postby aam » Mon Oct 10, 2016 1:47 pm

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
Attachments
cec_trimestral.wf1
(198.3 KiB) Downloaded 19 times

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 11299
Joined: Tue Sep 16, 2008 5:38 pm

Re: SEM solving

Postby EViews Gareth » Mon Oct 10, 2016 1:58 pm

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.
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aam
Posts: 3
Joined: Mon Oct 10, 2016 10:49 am

Re: SEM solving

Postby aam » Mon Oct 10, 2016 3:25 pm

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


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