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Posted: **Mon Jan 04, 2016 7:13 am**

I am trying to estiamte a system of nonlinear equations and I am new to Eviews but have programming background. I managed to import my data and create all the necessary variables and I defined my equation system thus:

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param sigma .5 psi 1 alphal 0.05 alphae 0.01

ly =  log(psi(1)) + sigma(1)/(sigma(1) -1) *log(kl*(exp(alphal(1)*beta*t)*(lbar^beta)*(kbar^(1-beta)))^((sigma(1) -1)/sigma(1))+(1-kl)*(exp(alphae(1)*t)*quality*ebar)^((sigma(1) -1)/sigma(1)))
les =  (sigma(1) -1)/sigma(1) * (log(psi(1)) + log(quality)+alphae(1)*t)+  (1-sigma(1))/sigma(1) * ly + (1+sigma(1))*log(ebar) + log(1-kl)
lls = (sigma(1) -1)/sigma(1) * (log(psi(1)) + alphal(1)*beta*t + beta*log(lbar) + (1-beta) * log(kbar)) + (1-sigma(1))/sigma(1) * ly + log(kl*beta)

When I try to estimate it, it says I don't have any valid observations in my system, which is puzzling to me. I have uploaded the working file. I am a bit unfamiliar with EViews as a work environment so I feel a bit lost.

Posted: **Mon Jan 04, 2016 8:52 am**

Probably taking logs of negative numbers, resulting in too many NAs.

Posted: **Tue Jan 05, 2016 6:24 am**

It works when I change the initial parameter specification to the following:

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param sigma(1) .5 psi(1) 1 alphal(1) 0.05 alphae(1) 0.01

It always takes a while to get used to how another language wants its t's crossed and its i's dotted it seems :)

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I receive the error of "no valid observations"

I receive the error of "no valid observations"

Re: I receive the error of "no valid observations"

Re: I receive the error of "no valid observations"