Dear Professors,

I am writing to ask for your guidance. I am trying to estimate a system of two variables jointly using multinormal distribution, however, my effort has not been successful.

Please, see the code/syntax I am trying to run in the bold form below. Could you please help to see if something was not right with the code.

I hope to receive a response from you soon.

#The hansl syntax#

scalar beta1= 4.3

scalar beta2= 0.16

scalar alfa1= 0.0097

scalar alfa2= 0.02

scalar mlog2pi = 2*log(2*acos(-1))

series e1= a - beta1 - beta2*a(-1)

series e2= b - alfa1 - alfa2*b(-1)

series es1 = e1^2

series es2 = e2^2

series v1= var(e1)

series v2= var(e2)

series v12 = cov(e1,e2)

series de = v1*v2 - v12^2

series iv1 = v1/de

series iv2 = v2/de

series iv3 = v12/de

mle ll = -0.5*(mlog2pi + log(de) + (iv1*es1 + iv2*es2 + 2*iv3*e1*e2))

params beta1 beta2 alfa1 alfa2

end mle

Yours faithful

Timmy John