incorporate dummy in a VAR
Posted: Mon Jan 24, 2011 4:08 am
Hallo.
I am new user of Eviews..I would appreciate some help in order to incorporate a dummy variable in the estimated VAR.
Specificaly, I want to add a dummy for the crisis period from 08-2007 to 06-2009.
I created a series of 1 and 0. But when I estimate the VAR there is that message "near singular matrix".
Could you please tell me how I should handle this?
Thanks,
Klaire
I am new user of Eviews..I would appreciate some help in order to incorporate a dummy variable in the estimated VAR.
Specificaly, I want to add a dummy for the crisis period from 08-2007 to 06-2009.
I created a series of 1 and 0. But when I estimate the VAR there is that message "near singular matrix".
Could you please tell me how I should handle this?
Thanks,
Klaire