GMM error: "log of a non positive number"

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jpk
Posts: 6
Joined: Tue Aug 16, 2011 4:01 am

GMM error: "log of a non positive number"

Postby jpk » Sun Aug 28, 2011 8:52 am

Hi, I am trying to estimate Euler equations by GMM and I receive the error message "log of a non positive number". Does anybody know how to resolve this? I've attached the workfile. Any help is seriously appreciated!
Attachments
gmm.wf1
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startz
Non-normality and collinearity are NOT problems!
Posts: 3796
Joined: Wed Sep 17, 2008 2:25 pm

Re: GMM error: "log of a non positive number"

Postby startz » Sun Aug 28, 2011 9:30 am

Your variable congr has negative values. For some values of an exponent, a power of a negative number isn't defined. (square root of -1, for example). You might try changing starting values of the parameters, but I wouldn't be too optimistic.

jpk
Posts: 6
Joined: Tue Aug 16, 2011 4:01 am

Re: GMM error: "log of a non positive number"

Postby jpk » Sun Aug 28, 2011 9:39 am

thanks!

smseco
Posts: 5
Joined: Sat Sep 10, 2011 11:26 pm

Re: GMM error: "log of a non positive number"

Postby smseco » Sun Sep 11, 2011 1:52 am

How did u perform GMM estimation for Euler equation using eviews?
I need to khow that urgently! :(

startz
Non-normality and collinearity are NOT problems!
Posts: 3796
Joined: Wed Sep 17, 2008 2:25 pm

Re: GMM error: "log of a non positive number"

Postby startz » Sun Sep 11, 2011 7:41 am

How did u perform GMM estimation for Euler equation using eviews?
I need to khow that urgently! :(
If it's really urgent, you might take a look at the extensive documentation on GMM in the help system.


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