Refuses to Estimate Dummy Variable
Posted: Sun Mar 16, 2014 5:24 am
I had no problem estimating my equation before the dummy, but now I've added the binary intercept dummy it's refusing to estimate saying "log of non-positive number" error.
What I would like to estimate is this:
log(y) = log(c(1)) + c(2)*log(k) + c(3)*log(l) + c(4)*log(e) + c(5)*log(m) + dummy*log(c(6))
I have tried many different variants but it refuses to estimate it.
I'm using Eviews 7.
It had no problem estimating the original equation which was:
log(y) = log(c(1)) + c(2)*log(k) + c(3)*log(l) + c(4)*log(e) + c(5)*log(m)
and my dummy variable seem to be fine.
Any ideas on how to make it work? I've tried adding extra brackets but the error still comes up
What I would like to estimate is this:
log(y) = log(c(1)) + c(2)*log(k) + c(3)*log(l) + c(4)*log(e) + c(5)*log(m) + dummy*log(c(6))
I have tried many different variants but it refuses to estimate it.
I'm using Eviews 7.
It had no problem estimating the original equation which was:
log(y) = log(c(1)) + c(2)*log(k) + c(3)*log(l) + c(4)*log(e) + c(5)*log(m)
and my dummy variable seem to be fine.
Any ideas on how to make it work? I've tried adding extra brackets but the error still comes up