SVAR Problem

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parulb
Posts: 9
Joined: Mon Sep 07, 2015 6:27 am

SVAR Problem

Postby parulb » Mon Sep 07, 2015 6:34 am

Hi,

I am using SVAR for my thesis work. However, after creating both A and B matrices, while running SVAR model in Eviews 8, I am getting the error "Hessian of SVAR likelihood is singular at starting values. Reset starting values or specify restrictions to ensure model is identified". My variables are oil prices, global growth, fed rate, GDP, CPI, M3, call rate, NEER, Nifty. Appreciate your help please!!
My A matrix is defined as follows
R1 1 0 0 0 0 0 0 0 0
R2 NA 1 NA 0 0 0 0 0 0
R3 NA 0 1 0 0 0 0 0 0
R4 NA NA 0 1 0 0 0 0 0
R5 NA 0 0 NA 1 0 0 0 0
R6 0 0 0 NA NA 1 NA NA NA
R7 NA 0 0 NA NA NA 1 NA 0
R8 NA NA NA NA NA NA NA 1 NA
R9 NA NA NA NA NA NA NA NA 1

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13583
Joined: Tue Sep 16, 2008 5:38 pm

Re: SVAR Problem

Postby EViews Gareth » Mon Sep 07, 2015 9:13 am

Did you try changing starting values?

parulb
Posts: 9
Joined: Mon Sep 07, 2015 6:27 am

Re: SVAR Problem

Postby parulb » Mon Sep 07, 2015 7:23 pm

Thanks Gareth for your response.
What do you mean by starting values?....do you mean the values in cells a11, a12?
Thanks again!!


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