Overflow error urgent

[econometrics_up]

Hello,

When I ran my program it appears an overflow error in my GARCH especification when my number of observations are 10,000. My equation for conditional variance appears with this error. I'm doing a montecarlo simulation. How can I correct this error?

Thanks,

[startz]

Which version of EViews are you using and what's the build date?

[econometrics_up]

We're using eviews 7 and the build date is Dec 4 2009

[startz]

Since you're missing three years of free updates, the first thing to do is to update EViews and see if that fixes the problem.

[econometrics_up]

Thanks! I'm going to update it and see

[trubador]

And then make sure that the variance specification fulfills the stationarity condition, which states that the sum of the estimated coefficients of ARCH and GARCH terms (i.e. α and β) should be less than one.