EViews.com

Hi,

I'm trying to run a Blanchard-Quah-type VAR decomposition using Proc->Estimate Structural Factorization. But I need both Short-Run and Long-Run restrictions on the VAR estimation. However, when I do so, it gives me an error "Internal Error 500". I'm just wondering if this error number corresponds to an error in my specification of the model and/or the restrictions, or if eViews 6 (Enterprise Edition Jun 3 2008 build) is not able to handle having both Short-Run and Long-Run restrictions at the same time.

Thanks in advance!

Internal Error 500 is something that should never happen, and usually indicates a bug in EViews. Would it be possible for you to send us your workfile, and instructions on exactly what you did to get that error to occur?

I've attached my workfile (impst_realgdpc). What I did was select DLIND and DLI_P and created a VAR (1 lag only and constant) with them. Then I selected Proc->Estimate Structural Factorization and typed in the following restrictions:

@e1 = C(1)*@u1 + C(2)*@u2
@e2 = -C(1)*@u1+C(1)*@u2
@lr1(@u2)=0

Ok, that's not really a bug other than EViews isn't giving a proper error message. The problem is because you've mixed a long-run specification with a short-run one, which you cannot do. I'll see if we can get the error message changed to something better than the current one.