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2009 Mar 26
1
pgmm (Blundell-Bond) sample needed
...creates x ~ lag(x) v=pgmm( formula, data=d, gmm.inst=~x, lag.gmm=c(2,99), transformation="ld" ) Error in solve.default(suml(Vi)) : system is computationally singular: reciprocal condition number = 8.20734e-20 obviously, I am confused. when I execute the same command on the included UKEmpl data set, it works. however, my inputs would seem perfectly reasonable. I would hope that the procedure could produce a lag(x) coefficient estimate of around 0, and then call it a day. could someone please tell me how to instruct pgmm to just estimate this simplest of all BB models? [My ul...