incorporate dummy in a VAR

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klairelo
Posts: 1
Joined: Mon Jan 24, 2011 3:47 am

incorporate dummy in a VAR

Postby klairelo » Mon Jan 24, 2011 4:08 am

Hallo.
I am new user of Eviews..I would appreciate some help in order to incorporate a dummy variable in the estimated VAR.
Specificaly, I want to add a dummy for the crisis period from 08-2007 to 06-2009.
I created a series of 1 and 0. But when I estimate the VAR there is that message "near singular matrix".
Could you please tell me how I should handle this?
Thanks,
Klaire
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EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13604
Joined: Tue Sep 16, 2008 5:38 pm

Re: incorporate dummy in a VAR

Postby EViews Gareth » Mon Jan 24, 2011 9:08 am

Sounds like you have perfectly co-linear regressors.
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