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st: RV: Factors in dfactor


From   "Rolando Gonzales" <[email protected]>
To   <[email protected]>
Subject   st: RV: Factors in dfactor
Date   Thu, 3 Mar 2011 08:46:56 -0400

Dear statalist members,

Because the optimization in the dfactor command would not converge if there
is not enough data,
I was wondering if there is possible to CONSTRUCT THE FACTORS BEFORE using
dfactor.

This would involve,

1)            Making a factor analysis with X, find factors F (with .factor
x1 x2 x3 ?)
2)            Including the factors of F directly in the dfactor equation
(the dependent will be one of the vars of X)
3)            Estimating the equation

Is my idea silly? I?m sorry, I?m new in Dynamic Factor Models and I?m having
problems with the estimation? I?m brainstorming solutions


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