Hui Wang:
Unfortuantely I too have only general advise. I would start with making a program that just
estimates the simultaneous demand-supply system, and once I got that working add the switch
regime. These "simpler" models usually have an official Stata counterpart (though I don't know
wether that is the case here) which makes it easier to check your results, and, if applicable,
"borrow" code.
There is another thing you could do, since it has already been done before on this data and if you
have access to the parameter estimates. You can use these estimates as inital values. If it does
not converge than, than your program is doing something realy different than that other (unnamed)
person.
HTH,
Maarten
--- Hui Wang <[email protected]> wrote:
> What I'm trying to do is to estimate a simultaneous demand-supply
> system with switch regime. The probability of one regime is 'lamda', and the
> other is '1-lamda'. The only difference between the two regimes is the
> intercept in the supply equation, which is captured by 'beta3'. Someone has
done this with the same data before, so I believe there is some way that
this can work out.
-----------------------------------------
between 1/2/2006 and 31/3/2006 I will be
visiting the UCLA, during this time the
best way to reach me is by email
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands
visiting adress:
Buitenveldertselaan 3 (Metropolitan), room Z214
+31 20 5986715
http://home.fsw.vu.nl/m.buis/
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