When I run the following code I got from Hamilton site, I get this error message:
Result too large [Maxseek, line 79]
Can anyone help me with this error? I am using version 14 GAUSS.
Estimation of Markov-switching ARCH models. Data and software for methods used in J. Econometrics, Sept./Oct. 1994
This error code is most likely occurring, because you are using GAUSS Light version 14. GAUSS Light has a matrix size limitation of 10,000 elements. If that line would create a matrix of more than 10,000 elements and you are using GAUSS Light, you would get that message.