Principle Component Analysis

For econometric discussions not necessarily related to EViews.

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ramzan
Posts: 21
Joined: Sat Oct 30, 2010 9:34 am

Principle Component Analysis

Postby ramzan » Sat Feb 05, 2011 6:16 am

Assalam-o-Alaikum


I want to construct the Macroeconomics Policy Index of there Major Macroeconomic Policies, Trade Police, Budget Deficit and Monetary Policy measured by the Trade Openness to GDP ratio, budget deficit to GDP ratio, inflation.

For this I am using the Principle Component Analysis. I have used the Eviews 5 and Eviews 6. The problem is the signs of the Eigen values are not same in Eviews 5 and Eviews 6.

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