Dear all,

I would like to report a problem with the "StrucBreak" package.

If I insert a dummy variable as a regressor, collinearity arises in (at least) one regime, and the estimation fails.

I attach the following script to fix the problem.

#---------------------------------------------------------

set verbose off
include StrucBreak.gfn
nulldata 60
setobs 4 2005:1

series y = normal()
series d = obs > 30 ? 0 : normal() > 1
list Z = const d
bundle m = SB_Setup(y, Z)
SB_Global(&m)

#---------------------------------------------------------