User’s Guide : Estimation and Solution Options
Estimation and Solution Options
EViews estimates the parameters of a wide variety of nonlinear models, from nonlinear least squares equations, to maximum likelihood models, to GMM specifications. These types of nonlinear estimation problems do not have closed form solutions and must be estimated using iterative methods. EViews also solves systems of non-linear equations. Again, there are no closed form solutions to these problems, and EViews must use an iterative method to obtain a solution.
Below, we provide details on the algorithms used by EViews in dealing with nonlinear estimation and solution, and the optional settings that we provide to allow you to control estimation.
Our discussion here is necessarily brief. For additional details, we direct you to the quite readable discussions in Press, et al. (1992), Quandt (1983), Thisted (1988), and Amemiya (1983).