Starting values in structural factorization

[sarinya]

Can anyone please explain the four choices of the starting values when I want to estimate the structural factorization?

I would like to know how they are different and how they can affect my analysis.

Best Regards,
Sarinya

[trubador]

The estimation here requires an optimization, which brings the convergence and local optima issues. Estimation results or the optimization process itself "may be" sensitive to starting values. You'll find the details of each choice in the manual. As for their effects on your results, I suggest you to experiment and see it for yourself. After all, EViews will do the hard work for you...