Dear All,
I try to run panel ARDL model to apply these variables: inflation, capacity utilisation, credit, and profit.
model is:
xtpmg inflation1diff rdiff credit1dif netprofit1dif if year>=2008, lr( l.inflation r credit profit ) ec(ec) replace pmg
inflation1diff, rdiff, credit1dif and netprofit1dif are varibales that i already took first difference of them.
After running model, i get this error: "Hessian has become unstable or asymmetric"
what is the problem in this setting. Could you possible help me?
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