Maximum Likelihood problem

[coldplayer]

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[trubador]

EViews does the summation implicitly, so all you have to do is create Ldt and Lst as series and define their equations seperately. And you'll need @dnorm and @cnorm functions to do that. Your likelihood function will then be Log(Ldt + Lst). You can simply use c(1), c(2), ..., c(n) for your unknown parameters or create your own coefficient vectors. I believe, examples in the manual will guide you through the rest...

[coldplayer]

Thank you for the answer. However, I've followed your advice but then I've encountered a problem. When I want to estimate a LogL object I get the message "Missing values in @logl series at current coefficients at observation.....". I've checked all series and none of them have NA in the sample period. What could be the problem? I'm attaching the workfile I'm using.

This is what I wrote in a LogL specification:

Code: Select all

@logl lf pon=flows-(gama(1)*mmr_eur+gama(2)*yield_ger+gama(3)*ind_eu27+gama(4)*cds_cro+gama(5)*liquid_cro+gama(6)*drate_cro+gama(7)*crobex+gama(8)*resdug_cro) potr=flows-(beta(1)*cpi_cro+beta(2)*inf_cro+beta(3)*crobex+beta(4)*crbxch+beta(5)*ind_cro+beta(6)*indch_cro+beta(7)*resuvoz_cro+beta(8)*drate_cro+beta(9)*cds_cro) potraznja=(1/sigma_s(1))*(@dnorm(pon/sigma_s(1)))*(1-(@cnorm(potr/sigma_d(1)))) ponuda=(1/sigma_d(1))*(@dnorm(potr/sigma_d(1)))*(1-(@cnorm(pon/sigma_s(1)))) lf=log(potraznja+ponuda)

What am I doing wrong?

[startz]

Check your starting values for the parameters.

[coldplayer]

Check your starting values for the parameters.

Starting values are set to 0, but the problem remains if I set them to 1, 10, or any other number.

[startz]

set the sigma values to 1000 and it'll run

[coldplayer]

set the sigma values to 1000 and it'll run

Thanks for the help, it does work!