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.

Thanks for the report, Giulio. First of all, this case needs to be handled instead of running into problems internally, of course.

My spontaneous reaction would be to disallow dummy variables such as this for the set of variables with breaking coefficients (Z), but I'm open to counter-arguments. Also, it's not entirely clear where to draw the line and how to define the criterion which variables are acceptable. Do you remember what was happening in your original Ox code?

Apart from that, I also tried to put the dummy into the non-breaking set X, where it would make more sense I think. But not surprisingly, I got the same error, so again, this needs fixing.

thanks

sven