Ridge (Ridge Regression and Ridge Trace)

[EViews Gareth]

Ridge Trace seems to work for me - I get a nice graph and table.

[stasibab]

Ridge Trace seems to work for me - I get a nice graph and table.

Could you please enlighten me? Have you used the excel file?

I inserted to the existing file the forecast lrconsf from the excel (f row) . (as you will see in the new workfile I attached)

When I run the ridge trace what do I put in dependant: the forecast? lrconsf? I tried everything and I am just getting a blank graph?

I am new to Eviews, sorry for the 'stupid' questions!
Thanx in advance!

[EViews Gareth]

In the ridge regression i put: dependant lrcons and independant: lrgdp lrprice

[stasibab]

As I said earlier the ridge regressions gives me the results, but the ridge trace add-in is giving me the blank graph

I made you a print screen and I think you will understand the problem.

[EViews Gareth]

You appear to be entering only a single biasing constant for the Trace. As the instructions indicate, you need to enter a list of values.

[stasibab]

Thank you, that was clearly my bad!

But again one problem, hopefully the last!

Given the automated sort of values in the ridge trace (0 , 0.5..etc) I run it and I got the following error message!

[EViews Gareth]

Hard to say without knowing what you did.

[stasibab]

This is what I run! And I got the same error! I used an alternate sample and also got the same!

[stasibab]

This is what I run! And I got the same error! I used an alternate sample and also got the same!

forgot the image sorry!

[EViews Gareth]

Works for me.

[stasibab]

Unbelievable or what? We are doing the exact same thing and getting 2 different results. Perhaps I miss a plugin or something? I installed the plugin straight from the site, no problem in installation...

Do not know that to say...

[startz]

Is your copy of EViews completely uptodate?

[stasibab]

Is your copy of EViews completely uptodate?

At last!! The update was the problem!! I see the beautiful graph too!!!

Thanx a lot!!

[stasibab]

Hello,

I would like to ask something more about the ridge regression. The baysan value has to be under 1??

Thank you in advance

[stasibab]

Hello,

I would like to ask something more about the ridge regression. The baysan value has to be under 1??

Thank you in advance

Added to my previous question about the ridge regression , I would like to ask you what exactly does the VIF represent in the ridge trace

Thanx again.