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I tried to run simultaneous equation system and forecast. In the forecast I encountered an overflow error message, saying that "Overflow in DO_ECIO.SOLVE(O=G)". ECIO is the name of the model. I tried to scale down some variables but it didn't work. Could someone please help me out or give a clue on how to resolve this. Thanks,

Zheng Tian

Do you have logs in the specification? It can be quite easy to get an overflow when dealing with logs.

Yes, I have some variables that need to be transformed to log. The solution message of the ECIO model is like that

"Solve begin 15:01:29
2015Q4 NA generated for XIO15 - Overflow"

But XIO15 is not logarithmic. The forecast before 2015Q4 is good but in 2015Q4 all variables seem to stop there and accumulate to very big numbers.

It sounds as though your system is explosive and is simply getting too big.

But it doesn't seem to be the out-of-memory problem. Is there any way to solve it?

What do you mean by solve it? Your system is explosive. That's a valid result. It may not be the result you want, but there's no way to "solve" it without re-specifying your system.

OK. I'll work on change some equations in the system. Thanks for help

Gareth- what does it mean that a system is explosive? I don't understand the terminology.

Thanks

Generates number that are huge.

Imagine you have a model that says:
Y=10*y(-1)^3

With y_0=1000 and you forecast it for 100 periods - you’ll find you quickly get to a point where the numbers are infeasibly large.