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Please I need help, I'm trying to make a Least Squares analysis but I have trouble when entering my equation because i get the message "Near singular matrix".

the equation is:

c(1) c(2) c(3) c(1)*0.0128*0.507*capital^(0.507-1)-c(2)*(descuento+0.05)+c(3)*(efectividad-(0.507/capital))*consumo

And i have attached my eviews file, please someone knows what's wrong? i need that for my thesis urgently. Thanks

Please I need help, I'm trying to make a Least Squares analysis but I have trouble when entering my equation because i get the message "Near singular matrix".

the equation is:

c(1) c(2) c(3) c(1)*0.0128*0.507*capital^(0.507-1)-c(2)*(descuento+0.05)+c(3)*(efectividad-(0.507/capital))*consumo

And i have attached my eviews file, please someone knows what's wrong? i need that for my thesis urgently. Thanks

The leading probably doesn't belong there.

OK, i've erased c(1) c(2) c(3) from the equation and the error message dessapeared.
But now the least squares method only returns 0 and 1 values for c(1) c(2) c(3)...what 'im still doing wrong?
thanks and sorry, i'm new in eviews.

OK, i've erased c(1) c(2) c(3) from the equation and the error message dessapeared.
But now the least squares method only returns 0 and 1 values for c(1) c(2) c(3)...what 'im still doing wrong?
thanks and sorry, i'm new in eviews.

Please I need help, I'm trying to make a Least Squares analysis but I have trouble when entering my equation because i get the message "Near singular matrix".

the equation is:

c(1) c(2) c(3) c(1)*0.0128*0.507*capital^(0.507-1)-c(2)*(descuento+0.05)+c(3)*(efectividad-(0.507/capital))*consumo

And i have attached my eviews file, please someone knows what's wrong? i need that for my thesis urgently. Thanks

The leading

Code: Select all

c(1) c(2) c(3)

probably doesn't belong there.

ah and i'm using eviews 6, please help!

Try running least squares by listing your dependent variable followed by your independent variables (separated by spaces).

Try running least squares by listing your dependent variable followed by your independent variables (separated by spaces).

Ok so I have:

m n p v c(1)*0.0128*0.507*m^(0.507-1)-c(2)*(p+0.05)+c(3)*(v-(0.507/m))*n (In the equation estimation)

where m n p v are my independent variables, but the dependent variable i dont know how to distinguishe it ¿? sorry again and thanks for your time!

I think, perhaps, you need to figure out your equation mathematically before you can figure out how to estimate it in EViews.

What exactly is the equation you're estimating?

I think, perhaps, you need to figure out your equation mathematically before you can figure out how to estimate it in EViews.

What exactly is the equation you're estimating?

I'm studying a economic growth model with enviromental externalities involved. The model equation is the following:

gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c

So I have time series from 1970-2000 for k, c, rho and phi (wich I already imported from excel).
For the rest of variables: A, B and delta I have constants values assigned (A=0.0128; B=0.507; delta=0.05)
Finnaly v is the variable that i need to estimate, because I need to define if it is significant for the model or not.

So the equation i've wrote in eviews is:

C(1)*0.0128*0.507*K^(0.507-1)-C(2)*(rho+0.05)+C(3)*(V-(0.507/k))*cons

When i define this equation and run the Least Squares, I only obtain 0 and 1 in the ESTIMATION OUTPUT, what is it that i'm doing wrong? Thanks a lot for your time i really appreciate it.

I think, perhaps, you need to figure out your equation mathematically before you can figure out how to estimate it in EViews.

What exactly is the equation you're estimating?

Here I uploaded my file, the final equation is: C(1)*0.0128*0.507*K^(0.507-1)-C(2)*(P+0.05)+C(3)*(PHI-(0.507/K))*CONS
Thanks again gareth.

I think, perhaps, you need to figure out your equation mathematically before you can figure out how to estimate it in EViews.

What exactly is the equation you're estimating?

I'm studying a economic growth model with enviromental externalities involved. The model equation is the following:

gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c

So I have time series from 1970-2000 for k, c, rho and phi (wich I already imported from excel).
For the rest of variables: A, B and delta I have constants values assigned (A=0.0128; B=0.507; delta=0.05)
Finnaly v is the variable that i need to estimate, because I need to define if it is significant for the model or not.

So the equation i've wrote in eviews is:

C(1)*0.0128*0.507*K^(0.507-1)-C(2)*(rho+0.05)+C(3)*(V-(0.507/k))*cons

When i define this equation and run the Least Squares, I only obtain 0 and 1 in the ESTIMATION OUTPUT, what is it that i'm doing wrong? Thanks a lot for your time i really appreciate it.

Where do you get the values of gamma?

I think, perhaps, you need to figure out your equation mathematically before you can figure out how to estimate it in EViews.

What exactly is the equation you're estimating?

I'm studying a economic growth model with enviromental externalities involved. The model equation is the following:

gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c

So I have time series from 1970-2000 for k, c, rho and phi (wich I already imported from excel).
For the rest of variables: A, B and delta I have constants values assigned (A=0.0128; B=0.507; delta=0.05)
Finnaly v is the variable that i need to estimate, because I need to define if it is significant for the model or not.

So the equation i've wrote in eviews is:

C(1)*0.0128*0.507*K^(0.507-1)-C(2)*(rho+0.05)+C(3)*(V-(0.507/k))*cons

When i define this equation and run the Least Squares, I only obtain 0 and 1 in the ESTIMATION OUTPUT, what is it that i'm doing wrong? Thanks a lot for your time i really appreciate it.

Where do you get the values of gamma?

The values of gamma are given because:
A = rate of available technology (1,28%)
B = capital output share (0,507)
delta = depreciation rate (5%)
All this numbers are for a specific economy wich my model is based on.

To clarify, the variables of the model "gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c" are:
gamma = economic growth path
A, B, delta defined above.
k = gross capital stock
rho = discount rate
v = pollution sensitivity
phi = effectiveness of capital on innovation
c = consumption

I'm studying a economic growth model with enviromental externalities involved. The model equation is the following:

gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c

So I have time series from 1970-2000 for k, c, rho and phi (wich I already imported from excel).
For the rest of variables: A, B and delta I have constants values assigned (A=0.0128; B=0.507; delta=0.05)
Finnaly v is the variable that i need to estimate, because I need to define if it is significant for the model or not.

So the equation i've wrote in eviews is:

C(1)*0.0128*0.507*K^(0.507-1)-C(2)*(rho+0.05)+C(3)*(V-(0.507/k))*cons

When i define this equation and run the Least Squares, I only obtain 0 and 1 in the ESTIMATION OUTPUT, what is it that i'm doing wrong? Thanks a lot for your time i really appreciate it.

Where do you get the values of gamma?

The values of gamma are given because:
A = rate of available technology (1,28%)
B = capital output share (0,507)
delta = depreciation rate (5%)
All this numbers are for a specific economy wich my model is based on.

To clarify, the variables of the model "gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c" are:
gamma = economic growth path
A, B, delta defined above.
k = gross capital stock
rho = discount rate
v = pollution sensitivity
phi = effectiveness of capital on innovation
c = consumption

But you say you're trying to estimate v. You don't know gamma unless you know v. So this is circular.

The values of gamma are given because:
A = rate of available technology (1,28%)
B = capital output share (0,507)
delta = depreciation rate (5%)
All this numbers are for a specific economy wich my model is based on.

To clarify, the variables of the model "gamma = A*B*K^(B-1) - (rho+delta) + v (phi - (B/k))*c" are:
gamma = economic growth path
A, B, delta defined above.
k = gross capital stock
rho = discount rate
v = pollution sensitivity
phi = effectiveness of capital on innovation
c = consumption[/quote]

But you say you're trying to estimate v. You don't know gamma unless you know v. So this is circular.[/quote]


yes I don't know gamma, i just assigned known values to some variables (A, B and delta) in gamma.
Or you say I have to eliminate those values for this to work?
thanks again for your attention.

To oversimplify, you have two unknowns (v and gamma) and only one equation. There's no way to get a meaningful solution. My recommendation would be to rethink what you're trying to estimate from the beginning.