Hello everyone, I am doing my thesis in finance. I am having problems with the markov regime change model. The command is as follows:
mswitch dr C, switch(B) varswitch
Where C represents the dependent variable and B represents the switching variable. At the time I enter the prices I get the output. The moment I redo the same procedure with the returns it gives me error 430: could not calculate numerical derivatives -- discontinuous region with missing values encountered.
How can I solve it? In theory redoing the procedure with yields instead of prices should come up with very similar results. Thanks
mswitch dr C, switch(B) varswitch
Where C represents the dependent variable and B represents the switching variable. At the time I enter the prices I get the output. The moment I redo the same procedure with the returns it gives me error 430: could not calculate numerical derivatives -- discontinuous region with missing values encountered.
How can I solve it? In theory redoing the procedure with yields instead of prices should come up with very similar results. Thanks
