Diebold et al. (2006) - Estimation problem

[sican]

Hi guys!

I am trying to do a similar stuff as Diebold, Rudebusch and Aruoba (2006) made, but I keep getting an error of:
WARNING: Singular covariance - coefficients are not unique .
I checked the forum and saw that sometimes it has to be with the initial coefficient values, but I don't know how to define the best ones to use, so if you can help me, I'd really appreciate it.

Please find my workfile attached, so you can see if I'm doing something wrong.

Thanks in advance!

[sican]

Just to bring the topic up. Does someone knows how to help me?
Thanks!

[dakila]

The problem is related to Eviews optimization algorithm, but the initial coefficients values.

[sican]

The problem is related to Eviews optimization algorithm, but the initial coefficients values.

Sorry, but I didn't understand. My english isn't that great. :) Did you mean that the problem is related with the initial coefficient values?

[dakila]

No

[sican]

No

So what exactly is the problem regarding the eviews optimization algorithm? I'm using the Marquardt algorithm, with a maximum number of iterations of 500 and a convergence tolerance of 10 E-6. Btw, I'm using Eviews 8.

[sican]

Anyone? :(