Simple ols function conducting an error stting tht the matrix is small however thisis what is only needed in the equation
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whenever I compute a simple ols i receive this message and also another error stating (wrong number of arguments to ols). Accordingly what should i do ?
y = Data(:,1); %Output gap
r = Data(:,2); %Fed funds rate
p = Data(:,3); %Inflation gap
T = size(y,1); %Number of observations
iota=ones(T,1); %Vector of ones
LHS=r; %The fed funds rate is the left-hand-side variable
RHS=[iota y p];
results=ols(LHS,RHS);
Warning: Matrix is singular, close to singular or badly scaled. Results may be inaccurate. RCOND = NaN.
> In ols (line 53)
>> LHS=r;
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