GMM orthogonality condition

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hoda
Posts: 1
Joined: Tue May 04, 2010 5:52 am

GMM orthogonality condition

Postby hoda » Tue May 04, 2010 6:29 am

Hello everyone,

I am trying to estimate an interest rate rule through GMM and I have a few questions.
First, my orthogonality condition is as follows E(i-((1-c(1))*(c(2)+c(3)inf(+12)+c(4)ygap)-c(1)i(-1))zt)=0 (zt being the instrument vector). How do I write this orthogonality condition in eviews?

I have 11 instruments and I keep getting a message saying near singular matrix.

Second, does it matter in which order I enter the instruments?

Please help :(

Thanks.

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