Hi,
I am estimating an ARCH and GARCH model for both the daily returns of the FTSE 100 and BTC between 1/10/2019 and 31/3/2020, to test the impact of covid-19 on the markets. I have fit a constant-only model using OLS and then tested for ARCH effects as advised in the Stata manual which shows an ARCH model can be fit.
When I proceed to do this it leaves me with an error message saying: "flat log likelihood encountered, cannot find uphill direction".
Is there a solution to this?
I am estimating an ARCH and GARCH model for both the daily returns of the FTSE 100 and BTC between 1/10/2019 and 31/3/2020, to test the impact of covid-19 on the markets. I have fit a constant-only model using OLS and then tested for ARCH effects as advised in the Stata manual which shows an ARCH model can be fit.
When I proceed to do this it leaves me with an error message saying: "flat log likelihood encountered, cannot find uphill direction".
Is there a solution to this?
