I am trying to estimate a VAR model with long run restrictions for a three variable system using the attached program - IV method. I am finding problem estimating the TSLS second equation. The error message reflected is
Order condition violated : insufficient number of instruments.
I am not sure what I am missing. Can anyone help please.
Thanks
Problems estimating long run VAR - IV method
Moderators: EViews Gareth, EViews Moderator, EViews Jason, EViews Matt
Problems estimating long run VAR - IV method
- Attachments
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- armenia.wf1
- workfile
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- armenia.prg
- program
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Re: Problems estimating long run VAR - IV method-Urgent
Whys does eviews crash everytime I run the program. What do I do about it?
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startz
- Non-normality and collinearity are NOT problems!
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Re: Problems estimating long run VAR - IV method
Is your copy of EViews uptodate?
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EViews Gareth
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Re: Problems estimating long run VAR - IV method
In answer to your first question - the error is somewhat self explanatory. You don't have enough instruments.
Re: Problems estimating long run VAR - IV method
What do you mean by eviews up to date. I am using eviews 6.
Re: Problems estimating long run VAR - IV method
Interesting Answer! You opened my eyes by quoting from my own post. Wow!In answer to your first question - the error is somewhat self explanatory. You don't have enough instruments.
Last edited by velasquez on Fri Feb 24, 2017 6:50 pm, edited 1 time in total.
Re: Problems estimating long run VAR - IV method
What do you mean by eviews up to date. I am using eviews 6.Is your copy of EViews uptodate?
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EViews Gareth
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13604
- Joined: Tue Sep 16, 2008 5:38 pm
Re: Problems estimating long run VAR - IV method
Interesting Answer! You opened my eyes by quoting from my own post. Wow!In answer to your first question - the error is somewhat self explanatory. You don't have enough instruments.
Sorry, I'll be more explicit. You need to add more instruments.
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EViews Gareth
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Re: Problems estimating long run VAR - IV method
EViews 6 is probably too old for anyone to help you. Its 10 years out of date, I think.What do you mean by eviews up to date. I am using eviews 6.Is your copy of EViews uptodate?
Re: Problems estimating long run VAR - IV method
Its not about Eviews 6, its about econometrics which you............EViews 6 is probably too old for anyone to help you. Its 10 years out of date, I think.What do you mean by eviews up to date. I am using eviews 6.Is your copy of EViews uptodate?
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startz
- Non-normality and collinearity are NOT problems!
- Posts: 3797
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Problems estimating long run VAR - IV method
You asked two questions. Gareth answered the econometrics question. The question about a crash is a software question. That was also answered
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