Near singular matrix error

[Vermeiren]

Hello,

I'm estimating following model using a system with 2sls.

gdp_deflator = c(1)*ulc + c(2)*gdp_deflator (+1) + c(3)*gdp_deflator (-1)

c(1)= (1-c(4))*(1-c(5))*(1-c(6)*c(5))/(c(5)+c(4)*(1-c(5)*(1-c(6))))

c(2) = c(6)*c(5)/(c(5)+c(4)*(1-c(5)*(1-c(6))))

c(3) = c(4)/(c(5)+c(4)*(1-c(5)*(1-c(6))))

@inst gdp_deflator (-1) gdp_deflator (-2) gdp_deflator (-3) gdp_deflator (-4) long_short_interest_rate_spread long_short_interest_rate_spread (-1) long_short_interest_rate_spread (-2) long_short_interest_rate_spread (-3) hptrendbbp hptrendbbp (-1) hptrendbbp (-2) hptrendbbp (-3) labor_income_share labor_income_share (-1) labor_income_share (-2) labor_income_share (-3)

data eviews.xlsx

(30.11 KiB) Downloaded 291 times

When i do this i get the 'Near singular matrix' error but i don't know how to solve this.
Can someone help me with this?
Thank you in advance

[EViews Matt]

Hello,

Curious, that's not the issue I experience when I attempt to perform the estimation you describe. Could you provide your EViews workfile with the system object ready to estimate?

[Vermeiren]

Hello

i'm currently using the student lite version of Eviews so i am not able to export my work.
I have attached a photo of my workfile and the system i use. I hope this will be helpful for you.

58704201_2122177521417008_5166121323738431488_n.jpg (1.7 MiB) Viewed 5869 times

[EViews Matt]

I suspect this is a starting values issue (your coefficient object c is probably all zeros, which is creating problems when the coefficients are first used in your system). Randomize the starting coefficients by running the command "rnd(c)" in the command window before attempting the estimation again.

[Selim]

Hello,
I received the same message.
But after deleting one of the variables, This message does not exist.
Because eviews does not accept exact collinearity among variables .

regards.