GARCH (1,1) estimation issue

[Schijthoos]

Hi all,

When trying to perform GARCH(1,1) volatility updating to a series of 5540 observations of lognormalreturns, I get the error "log of non positive number". As the manual says GARCH models the mean of a conditional variable. As the returns are my variable, i can't use the prices. Can anyone help me on this? Thanks heaps!

[EViews Glenn]

Probably starting values. Do a forum search for starting values.

[Schijthoos]

First of all, thanks for your help. I searched around and played with the starting values, but the error keeps comping up wheter i select OLS, .8,.5,.3 or 0.
I'm totally in the dark here!

[EViews Glenn]

No promises, but you could try posting your workfile.