Error in estimating an Exponential Trend

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vksf
Posts: 4
Joined: Fri Feb 21, 2014 5:55 pm

Error in estimating an Exponential Trend

Postby vksf » Fri Feb 21, 2014 6:10 pm

I am using Eviews 8 and I am getting an overflow/error message when I am estimating an exponential trend. I have typed the following equation under the quick tab using LS. (r is the independent variable and t=1,2,... is the time trend) Please find my workfile attached.
r c(1)*exp(c(2)*t)

It would be great if someone could help with this problem
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EViews Gareth
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Re: Error in estimating an Exponential Trend

Postby EViews Gareth » Fri Feb 21, 2014 6:22 pm

You're missing an equals sign

vksf
Posts: 4
Joined: Fri Feb 21, 2014 5:55 pm

Re: Error in estimating an Exponential Trend

Postby vksf » Fri Feb 21, 2014 6:34 pm

Thanks Gareth. Even with the = it does not work.
I've even tried typing ls r = c(1)*exp(c(2)*t) in the command window

vksf
Posts: 4
Joined: Fri Feb 21, 2014 5:55 pm

Re: Error in estimating an Exponential Trend

Postby vksf » Fri Feb 21, 2014 6:54 pm

I redid the exercise and it says "Near Singular Matrix Error. Regressors may be perfectly collinear"

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: Error in estimating an Exponential Trend

Postby startz » Fri Feb 21, 2014 9:46 pm

Try typing

Code: Select all

c=0.5
before you do the estimate

vksf
Posts: 4
Joined: Fri Feb 21, 2014 5:55 pm

Re: Error in estimating an Exponential Trend

Postby vksf » Tue Feb 25, 2014 4:45 pm

Thanks but does this solve the singularity issue? What is the basis for selecting c?

EViews Gareth
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Re: Error in estimating an Exponential Trend

Postby EViews Gareth » Tue Feb 25, 2014 4:47 pm

Just choose something other than zero. It should remove the singularity error.


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