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Near singular matrix, PMG

Posted: Thu Dec 24, 2020 1:55 am
by aawoad
Dear All
Greeting
I'm doing an estimation using PMG, my panel structure is T(2000-2019, N=78). I don't have any dummy variables, when u run PMG, I received "Near singular matrix". When I tried in STATA is working. What do you suggest?

Re: Near singular matrix, PMG

Posted: Thu Dec 24, 2020 7:16 am
by startz
In general, Stata silently drops variables when there is perfect multicollinearity while EViews gives a warning message instead. You might post your EViews file including the equation to be estimated.

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 1:27 am
by aawoad
Dear , Sir
Attached you will find my reviews file, I want to estimate the following equation

CON1 CUR EDU FDI FIN2 INF2 GOE TR UNE Y1

Regards

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:08 am
by startz
Dependent Variable: CON1
Method: Panel Least Squares
Date: 12/28/20 Time: 06:07
Sample (adjusted): 2000 2018
Periods included: 18
Cross-sections included: 61
Total panel (unbalanced) observations: 755

Variable Coefficient Std. Error t-Statistic Prob.

CUR -8.12E+09 1.86E+09 -4.364800 0.0000
EDU -33963273 27122296 -1.252227 0.2109
FDI -2.22E+08 1.75E+08 -1.269897 0.2045
FIN2 1.26E+08 50515644 2.489889 0.0130
INF2 7.08E+08 1.57E+08 4.512228 0.0000
GOE 5.377901 0.039234 137.0715 0.0000
TR -45312197 35269080 -1.284757 0.1993
UNE -8.21E+08 1.78E+08 -4.618991 0.0000
Y1 1.25E+09 2.73E+08 4.589057 0.0000

Root MSE 2.59E+10 R-squared 0.966630
Mean dependent var 4.67E+10 Adjusted R-squared 0.966272
S.D. dependent var 1.42E+11 S.E. of regression 2.61E+10
Akaike info criterion 50.81722 Sum squared resid 5.07E+23
Schwarz criterion 50.87238 Log likelihood -19174.50
Hannan-Quinn criter. 50.83847 Durbin-Watson stat 0.196020

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:25 am
by aawoad
Hello
Thanks, but in my case what is problem with PMG?
Regards

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:32 am
by startz
Your workfile did not include the equation you estimated. Either include that equation or post the exact command you used.

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:42 am
by aawoad
I selected the same variables that you estimated today, but I selected ARDL/PMG. Could you please help?

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:52 am
by startz
Note that you have a lot of NAs. I suspect that once lags are included there isn't any data left.

Re: Near singular matrix, PMG

Posted: Mon Dec 28, 2020 7:58 am
by aawoad
I agree with you, that what I thought, anyway, thanks a lot for help and spport
Regards