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RE: st: nlcom, "Maximum number of iterations exceeded."

Subject   RE: st: nlcom, "Maximum number of iterations exceeded."
Date   Fri, 20 Mar 2009 18:54:35 +0100

Dear Maarten,

Thanks for your reply, but I do not think this is related to the problem I have with nlcom.   It is true that most probably there is some collinearity issue in the equations I am estimating (these are the output and input demand functions of a Symmetric Normalised Quadratic Profit Function by Diewert and Wales (1987) Econometrica).  

The problem I have has to do with nlcom. Even if I modify my equations in different manner I get the same kind of problem.




You will probably need to fix your -nlsur- command before 
using the -nlcom- command. One thing you might want to 
look into is perfect colinearity.

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