Dear Arne,
thank you very much upfront for your time that you invest in answering my question.
I'm using your systemfit R package to analyze if companies risk appetite has a relationship to their performance and how it evolves over time. We collected data for ca. 80 companies, from 6 segments over 15 years that gives us a final data set with 1,312 firm-year observations. We have set up 3 equations (based on existing SEM from literature) and experience the following:
- The systemfit package performs well when using no dummy variables (e.g. for year, segment, firm)
- When adding dummy variables (year / segment) the systemfit package still provides results; however, if we remove the segment dummy variable and add a firm dummy variable we experience the error message: "cs_lu(A) failed: near-singular A (or out of memory)"
- We also tested the systemfit package with firm and year dummy variable using a sub-sample of our data (ca. 10 companies) and the package worked without any error messages
- Afterwards we tested the systemfit package using a server (64 gb ram, 16 core,...) by applying the systemfit package again on the final data set. However, we experienced again the same error message.
We use R 3.3.2 and the systemfit package 1.1-20.
I would be very grateful if you could support us anyhow and give us a hint how we could solve the situation.
Thanks again for your help.
Warm Regards from Munich,
Michael
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Michael Keilhacker, MBA, M.A.
Logistics and Supply Chain Management
Technische Universit?t M?nchen ? TUM School of Management
Arcisstra?e 21 ? 80333 M?nchen ? +49-163-5454918<tel:%2B49-89-289-28203> ? michael.keilhacker at tum.de<mailto:christian.mandl at tum.de>
www.log.wi.tum.de<http://www.log.wi.tum.de>