I am trying to estimate a model and I have there observations but 2 of them are obtained from the third, would that be a problem? I have data on output, but I only have data on tax revenues as a % of gdp and informal sector as a % of gdp, so I multiply gdp by these %s to get series for Tax Revenues and Informal output.

I ask because I get the following warnings:

1- “Warning: Matrix is singular, close to singular or badly scaled.

Results may be inaccurate. RCOND = NaN.”

2- “Warning: Matrix is singular to working precision.”

And the code does not produce the smoothed shocks. Any help would appreciated.