0
$\begingroup$

when using SVEC to construct the model, I just constantly facing the problems: Error in solve.default(infgamma) : system is computationally singular: reciprocal condition number = 5.60627e-21

this model has 7 variables, and with 4 cointegrations, and I add the LR and SR model as follows: 1.LR restrictions 2.SR restrictions the follow is the code and i will be appreciated if anyone can help me!!! vecmmodel<-ca.jo(data,type="trace",ecdet="const",K=3,spec="transitory") svec<-SVEC(vecmmodel,LR=LR,SR=SR,r=4,lrtest=FALSE,runs=100)

Improve this question
$\endgroup$
1
  • 2
    $\begingroup$ Is the software supposed to cope with all that missing data? $\endgroup$
    – mdewey
    Apr 13, 2021 at 16:02

1 Answer 1

Reset to default
1
$\begingroup$

If the program says the system is computationally singular, that means two or more columns are too cointegrated and the regression formula can't be done. You simply can not use this method for this data.

Improve this answer
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.