double Log Linear

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i_am_piyo
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Joined: Wed Apr 22, 2009 6:47 pm

double Log Linear

Postby i_am_piyo » Thu Apr 23, 2009 6:29 am

I found error that " near singular metrix",what does it mean? what should I do the next? How to deal with this problem?
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EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
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Joined: Tue Sep 16, 2008 5:38 pm

Re: double Log Linear

Postby EViews Gareth » Thu Apr 23, 2009 8:04 am

It means that a matrix that you're trying to invert is close to, or is, singular.

Without knowing what you're doing, its hard to say what you should do next.
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i_am_piyo
Posts: 2
Joined: Wed Apr 22, 2009 6:47 pm

Re: double Log Linear

Postby i_am_piyo » Sun Apr 26, 2009 4:21 am

I'm trying to estimate regression after take log dependent variable and independent variable. There're 2 dummy in this equation.

" lnmd c lnpm lnpy lnyd d1 d2" after I put in this command that error was shown.
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startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: double Log Linear

Postby startz » Sun Apr 26, 2009 5:38 am

I'm trying to estimate regression after take log dependent variable and independent variable. There're 2 dummy in this equation.

" lnmd c lnpm lnpy lnyd d1 d2" after I put in this command that error was shown.
Most likely d1+d2=1. This is the dummy variable trap. It means the equation is misspecified.
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