NLS and Box-Cox transformation

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harmvangoor
Posts: 3
Joined: Tue Dec 13, 2011 4:15 am

NLS and Box-Cox transformation

Postby harmvangoor » Tue Dec 13, 2011 4:20 am

Hi all,

I'm trying to estimate the following equation with Eviews:

y=(1+c(1)*x1/c(2))^(1/c(1)).

However, i'm getting an error message saying:

'division by zero'.

I guess this is because I try to divide by parameters, however it is a supply function based on an inverse Box-Cox transformation that I need to estimate. Can anyone help me out?

Cheers,

Harm

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: NLS and Box-Cox transformation

Postby startz » Tue Dec 13, 2011 7:30 am

Change the starting values for c(1) and c(2).

harmvangoor
Posts: 3
Joined: Tue Dec 13, 2011 4:15 am

Re: NLS and Box-Cox transformation

Postby harmvangoor » Tue Dec 13, 2011 7:39 am

Thanks, any idea where i can find that?

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: NLS and Box-Cox transformation

Postby startz » Tue Dec 13, 2011 8:09 am

open the c vector in the workfile window.

harmvangoor
Posts: 3
Joined: Tue Dec 13, 2011 4:15 am

Re: NLS and Box-Cox transformation

Postby harmvangoor » Tue Dec 13, 2011 8:10 am

Thanks a lot, found it!


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