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
SVAR Problem
Moderators: EViews Gareth, EViews Moderator
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EViews Gareth
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Re: SVAR Problem
Did you try changing starting values?
Re: SVAR Problem
Thanks Gareth for your response.
What do you mean by starting values?....do you mean the values in cells a11, a12?
Thanks again!!
What do you mean by starting values?....do you mean the values in cells a11, a12?
Thanks again!!
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