Dear all,
I am working with a CIA model and when I want to deal with correlated shocks I get this error
The specified covariances for the structural errors are not consistent with the
variances as they imply a correlation larger than ±1
I can not figure out what is wrong.
Moreover, when I want to setting up correlation between three or more shocks I get the error saying
ERROR: finalround.mod: line 171, col 16: syntax error, unexpected COMMA, expecting EQUAL
Do I have to do this procedure two by two? Or there is something wrong with my code?
I would like to know please, does the eu model specification as SarvinSharif made it require to have the data to launch the model? Or do we calculate the standard deviations, variances and covariances with the data that we just put in the model? I would like to know please, if it is possible for the model to call on the data of the defined variables and how? thank you all!