EViews.com

Hello,

When I ran my program it appears an overflow error in my GARCH especification when my number of observations are 10,000. My equation for conditional variance appears with this error. I'm doing a montecarlo simulation. How can I correct this error?

Thanks,

Which version of EViews are you using and what's the build date?

We're using eviews 7 and the build date is Dec 4 2009

Since you're missing three years of free updates, the first thing to do is to update EViews and see if that fixes the problem.

Thanks! I'm going to update it and see

And then make sure that the variance specification fulfills the stationarity condition, which states that the sum of the estimated coefficients of ARCH and GARCH terms (i.e. α and β) should be less than one.