overflow error in GMM

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

overflow error in GMM

Postby smseco » Wed Oct 19, 2011 7:53 am

The "overflow" error occurred when i tried to perform a GMM estimation of a nonlinear equation. (I am using eviews7)
What it means?

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: overflow error in GMM

Postby startz » Wed Oct 19, 2011 8:07 am

The first thing it means is that you should be sure your copy of EViews is uptodate.

mary-perfect
Posts: 2
Joined: Fri May 11, 2012 10:20 am

Re: overflow error in GMM

Postby mary-perfect » Fri May 11, 2012 10:43 am

Good day! I have the same problem with overflow error when trying to estimate a system of 10 nonlinear equations by GMM. Initially it worked well, but then an error occurred and I can do nothing with my investigation. Besides, sometimes the program shows near singular matrix error in the same estimation.
I use Eviews7 and have updated it recently. So, how could I cope with it? Many thanks in advance.

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: overflow error in GMM

Postby startz » Fri May 11, 2012 10:46 am

This can happen in a nonlinear estimation. About the best you can do may be to change the starting values for the parameters.

mary-perfect
Posts: 2
Joined: Fri May 11, 2012 10:20 am

Re: overflow error in GMM

Postby mary-perfect » Fri May 11, 2012 11:20 am

Could you, please, specify what starting values could be changed?

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: overflow error in GMM

Postby startz » Fri May 11, 2012 11:26 am

EViews begins a nonlinear estimation with whatever values are in the c vector.


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