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Chow Test Error Message
Posted: Mon Apr 11, 2011 8:17 am
by newsh101
I have tried to run the Chow Breakpoint Test on my time series equation. I entered the breakpoint test as 4 however the error message comes up saying "Specification leads to singular matrix in at least one sub-sample". I dont get any results after this point. Any help?
Re: Chow Test Error Message
Posted: Mon Apr 11, 2011 8:20 am
by EViews Gareth
The error message is pretty clear - in one of the subsamples (i.e. one of the blocks of data on one side of the date you chose), you have a singular matrix. Thus the test can't be performed.
A common cause of this is the use of dummy variables.
Re: Chow Test Error Message
Posted: Mon Apr 11, 2011 8:23 am
by newsh101
Yes one of them is, however does this prevent me from testing for breakpoints altogethers. Thanks for the speedy reply
Re: Chow Test Error Message
Posted: Mon Apr 11, 2011 8:43 am
by EViews Gareth
Yes, it does.