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Hello,

I'm trying to estimate the following using the seemingly unrelated equations methodology but I get an error, near singular matrix prompt. What's the cause of this and how can I adjust the programming to ensure that this doesn't occur?

LOG(RTDDPE) = C(1) + C(2)*LOG(REPNL)+C(3)*LOG(POPNL)+C(4)*LOG(HDDNL)
LOG(RTDDPE) = C(5) + C(6)*LOG(REPPE)+C(7)*LOG(POPPE)+C(8)*LOG(HDDPE)
LOG(RTDDNS) = C(9) + C(10)*LOG(REPNS)+C(11)*LOG(POPNS)+C(12)*LOG(HDDNS)
LOG(RTDDNB) = C(13) + C(14)*LOG(REPNB)+C(15)*LOG(POPNB)+C(16)*LOG(HDDNB)

What happens when you estimate the equations separately by LS?

The equations when estimated using LS work.

Don't you have the same dependent variable twice?

Gah. I'd missed that typo in the programming.

Thanks.

Hi Eviews Gareth, I hope you reply my question here.
I am trying to set up this model in Eviews to estimate it with using a SUR system model:

RHO_GOLD_GASOLINE = C(1) + C(2)*LOGD_TBILLS + C(3)*LOGD_USEX + C(4)*MAC_ADS + C(5)*RHO_GOLD_GASOLINE(-1)+ [AR(1)=C(6)]
RHO_GOLD_HO = C(7) + C(8)*LOGD_TBILLS + C(9)*LOGD_USEX + C(10)*MAC_ADS + C(11)*RHO_GOLD_HO(-1) + [AR(1)=C(12)]
RHO_GOLD_NG = C(13) + C(14)*LOGD_TBILLS + C(15)*LOGD_USEX + C(16)*MAC_ADS + C(17)*RHO_GOLD_NG(-1) + [AR(1)=C(18)]
RHO_GOLD_WTI = C(19) + C(20)*LOGD_TBILLS + C(21)*LOGD_USEX + C(22)*MAC_ADS + C(23)*RHO_GOLD_WTI(-1) + [AR(1)=C(24)]

The problem is that if I estimate the system without AR(1) term there is no problem and it works fine, however when I include the AR(1) term to the model and I push ok to estimate it, Eviews suddenly stop to work and I have to close it completely, I tried it with different sets of data and still getting the same problem. I would like to know do you have any idea why Eviews can not estimate a SUR model that includes AR(1) term and lagged dependent variable in the same time? can it be a problem with my Eviews?
If you need I can attach you the workfile.
Thanks

The first thing Gareth is going to ask you is what the version and build date is of your EViews copy. Look under Help/About.

The first thing Gareth is going to ask you is what the version and build date is of your EViews copy. Look under Help/About.

Thanks for quick reply Startz, its Eviews 8, 19 November 2013 build.

You might just do an update and see if that happens to fix the problem.

You might just do an update and see if that happens to fix the problem.

It is solved thanks alot.