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Re: st: Problem of convergence

From   Stas Kolenikov <>
Subject   Re: st: Problem of convergence
Date   Sat, 9 Oct 2004 17:41:53 -0400

On Sun, 10 Oct 2004 01:07:21 +0800, Rozilee Asid <> wrote:
> I have a sets of mixed cross country data started from 1996 to 2000 and
> trying to estimate SUREG model. My equations system consists of three model
> and when I invoking 'isure' option, the stata output show " convergence not
> achieved".
> Is it valid to report the output since the data failed to converge?

Generally, the answer is no. There's no wonder it did not converge: if
you have an annual data, then it means you have something like 5 data
points, and you won't be able to estimate anything with them. That's
what you are trying to do here: you are estimating the covariance
matrix on five observations.

Stas Kolenikov
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