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double Log Linear
Posted: Thu Apr 23, 2009 6:29 am
by i_am_piyo
I found error that " near singular metrix",what does it mean? what should I do the next? How to deal with this problem?
Re: double Log Linear
Posted: Thu Apr 23, 2009 8:04 am
by EViews Gareth
It means that a matrix that you're trying to invert is close to, or is, singular.
Without knowing what you're doing, its hard to say what you should do next.
Re: double Log Linear
Posted: Sun Apr 26, 2009 4:21 am
by i_am_piyo
I'm trying to estimate regression after take log dependent variable and independent variable. There're 2 dummy in this equation.
" lnmd c lnpm lnpy lnyd d1 d2" after I put in this command that error was shown.
Re: double Log Linear
Posted: Sun Apr 26, 2009 5:38 am
by startz
I'm trying to estimate regression after take log dependent variable and independent variable. There're 2 dummy in this equation.
" lnmd c lnpm lnpy lnyd d1 d2" after I put in this command that error was shown.
Most likely d1+d2=1. This is the dummy variable trap. It means the equation is misspecified.