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Nl GMM help

Posted: Fri Aug 28, 2015 9:10 am
by sush
I am trying to simultaneously estimate two nonlinear equations using GMM. I have entered in the equations but keep receiving 'error 4194303'. Could you please tell me why I am receiving this error and if my syntax is correct:

milkproduction=c(1) +c(2)*farmgateprices +c(3)*averagefeedprice +c(4)*freshlycalvedhelferspric +c(5)*iherd +c(6)*time +1/2*(c(6)*(farmgateprices*averagefeedprice) +c(7)*(farmgateprices*freshlycalvedhelferspric) +c(8)*(freshlycalvedhelferspric*averagefeedprice)) +c(9)*(farmgateprices*time) +c(10)*(averagefeedprice*time) +c(11)*(freshlycalvedhelferspric*time) +c(12)*(iherd*time)

farmgateprices=priceofdairyproducts*(c(13) +c(14)*milkproduction +c(15)*monthlywage +c(16)*electricitypurchaseprice +c(17)*realinterestrate +c(18)*priceofdairyproducts)


Thank you,
Sush

Re: Nl GMM help

Posted: Fri Aug 28, 2015 9:17 am
by EViews Gareth
Could you provide the workfile, along with the version of EViews and build date (Help->About EViews)?

Re: Nl GMM help

Posted: Fri Aug 28, 2015 10:03 am
by sush
Yes, the build date is apr 20 2015, EVIEWS 8

Re: Nl GMM help

Posted: Fri Aug 28, 2015 12:15 pm
by EViews Gareth
Where are your instruments?

Re: Nl GMM help

Posted: Fri Aug 28, 2015 1:51 pm
by sush
I have used all the exogenous variables as instruments along with a few others:

iherd
averagefeedprice
freshlycalvedheiferspric
monthlywage
electricitypurchaseprice
realinterestrate

coffeetea
fruit
breadandcereal
ipop
dummymonth

Re: Nl GMM help

Posted: Fri Aug 28, 2015 2:26 pm
by EViews Gareth
I think you're just getting a singular matrix issue.

Re: Nl GMM help

Posted: Fri Aug 28, 2015 2:34 pm
by sush
Would using logged variables instead of the absolute values help? or is this an issue with my data itself?

Re: Nl GMM help

Posted: Fri Aug 28, 2015 3:07 pm
by EViews Gareth
Probably a data issue.

Re: Nl GMM help

Posted: Fri Aug 28, 2015 5:49 pm
by sush
Okay. But the syntax itself is correct and has no issues right?

Thank you very much for your help! I really appreciate it :)

Re: Nl GMM help

Posted: Fri Aug 28, 2015 6:04 pm
by EViews Gareth
Correct