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NLS and Box-Cox transformation

Posted: Tue Dec 13, 2011 4:20 am
by harmvangoor
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

Re: NLS and Box-Cox transformation

Posted: Tue Dec 13, 2011 7:30 am
by startz
Change the starting values for c(1) and c(2).

Re: NLS and Box-Cox transformation

Posted: Tue Dec 13, 2011 7:39 am
by harmvangoor
Thanks, any idea where i can find that?

Re: NLS and Box-Cox transformation

Posted: Tue Dec 13, 2011 8:09 am
by startz
open the c vector in the workfile window.

Re: NLS and Box-Cox transformation

Posted: Tue Dec 13, 2011 8:10 am
by harmvangoor
Thanks a lot, found it!