Hi,
I am using SVAR for my thesis work. However, after creating both A and B matrices, while running SVAR model in Eviews 8, I am getting the error "Hessian of SVAR likelihood is singular at starting values. Reset starting values or specify restrictions to ensure model is identified". My variables are oil prices, global growth, fed rate, GDP, CPI, M3, call rate, NEER, Nifty. Appreciate your help please!!
My A matrix is defined as follows
R1 1 0 0 0 0 0 0 0 0
R2 NA 1 NA 0 0 0 0 0 0
R3 NA 0 1 0 0 0 0 0 0
R4 NA NA 0 1 0 0 0 0 0
R5 NA 0 0 NA 1 0 0 0 0
R6 0 0 0 NA NA 1 NA NA NA
R7 NA 0 0 NA NA NA 1 NA 0
R8 NA NA NA NA NA NA NA 1 NA
R9 NA NA NA NA NA NA NA NA 1
I am using SVAR for my thesis work. However, after creating both A and B matrices, while running SVAR model in Eviews 8, I am getting the error "Hessian of SVAR likelihood is singular at starting values. Reset starting values or specify restrictions to ensure model is identified". My variables are oil prices, global growth, fed rate, GDP, CPI, M3, call rate, NEER, Nifty. Appreciate your help please!!
My A matrix is defined as follows
R1 1 0 0 0 0 0 0 0 0
R2 NA 1 NA 0 0 0 0 0 0
R3 NA 0 1 0 0 0 0 0 0
R4 NA NA 0 1 0 0 0 0 0
R5 NA 0 0 NA 1 0 0 0 0
R6 0 0 0 NA NA 1 NA NA NA
R7 NA 0 0 NA NA NA 1 NA 0
R8 NA NA NA NA NA NA NA 1 NA
R9 NA NA NA NA NA NA NA NA 1