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Hi,

I just started learning programming in eviews and hence need some help. I am trying to work out a BQ factorization for a bivariate system using the attached program. However, on running the program I get the following error message

Equation estimates not valid in "DO_EQ1.makeresids eps1"

Can anyone tell me where I am going wrong. The workfile and program file are attached for your reference. I am using eviews 6.

Thanks
Velasquez

should be:

Thank you very much. It worked.

Regards
Velasquez

I have another question, this time relating to the impulse response. In the BQ factorization, the response of the first variable (dhh_tl) is constrained to be zero with respect to the temporary shock (shock 2). But in the impulses, we find that dhh_tl is responding to shock2 significantly. Is there something wrong in the program.

Thanks
Velasquez