Hi team, my code has more external shocks than observable variables, and my observable variables shouldn’t be linear related. But still I get the error message of stochastic singularity, unless I delete the last observable (lbl). Is there any way I can keep my last observable and avoid the stochastic singularity problem? Thanks. forq.rar (15.6 KB)
- You should try to find out why that variable is linearly related to the others
- You can always add measurement error to that or another variable to break the linear dependence.