Probable bug with Markov switching transition matrix

[startz]

There may be a bug when transition probabilities in a Markov switching model are restricted to one. In the attached file, equation ChinaAR essentially "doesn't work" with transition probabilities for state 2 restricted to 0,1. If the restriction is changed to 0.001,0.999 it works fine.

[EViews Glenn]

Not yet convinced it's a bug I get singularity for these data with 1e-10 and 1-1e-10.

[startz]

That's reasonable evidence. I still wonder whether there's an overflow or something internally that might be catchable.

[EViews Glenn]

Worth taking a look when I get a chance.