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Setting coeff values
Posted: Tue Aug 12, 2014 12:29 pm
by trainee
Hope everyone is doing well. So I have a bit of a puzzle.
I was running into a Near Singular Matrix problem when trying to solve a system of equations. It seems to go away when I set coefficients to a certain value (say 1) and then estimate them.
Any insights?
Re: Setting coeff values
Posted: Tue Aug 12, 2014 3:09 pm
by EViews Gareth
At certain starting values the non-linear problem is singular. At other starting values it is not.
Re: Setting coeff values
Posted: Wed Aug 13, 2014 7:59 am
by trainee
What do you exactly mean by a non-linear problem? More than one solution?
Re: Setting coeff values
Posted: Wed Aug 13, 2014 8:06 am
by EViews Gareth
Whatever equation you're trying to estimate is probably non-linear in the coefficients.
Re: Setting coeff values
Posted: Fri Aug 15, 2014 7:23 am
by trainee
Thanks Gareth.
Do you mind explaining what you mean by 'non-linear in the coefficients'?
Re: Setting coeff values
Posted: Fri Aug 15, 2014 8:14 am
by EViews Gareth
The specification you've defined is not a linear relationship.
http://en.wikipedia.org/wiki/Nonlinear_regression