Hi all,
Yes, I'll be reading onto that. Another question I have is that I've been using a 9x9 matrix with a lot of constraints (here, it is 36) which is not random (i.e. they were backed up by theoretical assumptions). In such case, given any possible combinations of the 0's, the determinant will most likely be zero and therefore, no solution will exist (unless it is a Cholesky-decomposition or if there really exists a combination that provides a solution in this relatively large matrix). Does it follow that I will not be able to estimate the SVAR because no such solution exists? This has been bugging me for days already. Any ideas?
Truly grateful for your responses,
Deborah Sy