Gregory-Hansen Cointegration Test

[nndzama]

Greetings

When I try to run the run Gregory Hansen Cointegration Test I get this error:Near singular matrix error. Regressors may be perfectly
collinear in "DO_ GHC.LS Y C (@TREND>6-2) G"[/b].[/u] I have tried all the tricks I know but no solution. I only have 1 dependent variable (exports) and 1 independent variable (imports).

Please assist.

Kind Regards
Nwabisa

[startz]

What values do you see for the series

Code: Select all

(@TREND>6-2)

?

[nndzama]

Hi Startz

I also have no idea where is that coming from (@Trend>6-2, it pops up when I run the program. All I know is that I selected REGIME SHIFT model because I want to capture both change in intercept and trend.

Kind Regards
Nwabisa

[EViews Gareth]

You might want to post your workfile and exact instructions on what you are doing.

[nndzama]

Hi Gareth

I have attached my workfile and G-H program. The study examines the sustainability of the current account. The aim of running this test is to find if the long-run relationship exists between exports and imports and account for any structural breaks.

Kind Regards
Nwabisa

[startz]

The problem is that LRX and LRM_ are only defined from 2009 and that @TREND>6-2 is always 1 in this period, hence collinear with the intercept.

As a guess, try setting the smpl to the period in which all your variables are valid.