Dear gretl list,
I am trying to estimate a few restricted VECMs, but the estimation does
fail quite often using the default switching algorithm. Actually, I just
would like to know to what exactly does the following error message refer
to:
"Switching algorithm: failed
Exact or near collinearity encountered"
I could not find any hints in the C-sources. Are the restrictions collinear
or is it the high correlation between variables?
Thanks in advance,
Artur