Colinearity Problem, Only one equation!!!

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Colinearity Problem, Only one equation!!!

Postby mghazias » Thu Jun 27, 2013 10:29 pm

Hi every one,
how is it possible that there is colinearity between bunch of variables, and there is only one colinear equation?
mghazias
 
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Re: Colinearity Problem, Only one equation!!!

Postby jpfeifer » Sun Jul 07, 2013 9:33 am

Coud you post an example?
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Colinearity Problem, Only one equation!!!

Postby mghazias » Sun Jul 07, 2013 2:34 pm

Here is my two country model I have told you about,
Thanks a lot.
Attachments
sfile.m
(3.59 KiB) Downloaded 53 times
owp3_steadystate.m
(5.04 KiB) Downloaded 52 times
owp3.mod
(8.06 KiB) Downloaded 53 times
mghazias
 
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Re: Colinearity Problem, Only one equation!!!

Postby jpfeifer » Sun Jul 07, 2013 7:08 pm

The reason is numerical. A computer always has to make a decision what to take as 0, even if it is not exactly 0. If you look into model_diagnostics, you will see that some choices have to be made what to count as singular as opposed to close to singular. The output of model_diagnostics should thus be seen as providing guidelines what to look at. You should not interpret it as a strict analytical statement.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: Colinearity Problem, Only one equation!!!

Postby mghazias » Sun Jul 07, 2013 7:16 pm

Thanks,
I am removing the rigidities to find the problem.
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