question about the auxiliary variables
Posted: Fri Jul 26, 2013 12:21 pmI have a model with auxiliary varis.
the first equation is with e(t) e(t-1)
the second is with e(t-1) e(t) e(t+1)
How could I do to avoid the problem:
"There are 4 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)"
the first equation is with e(t) e(t-1)
the second is with e(t-1) e(t) e(t+1)
How could I do to avoid the problem:
"There are 4 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)"