Object reference giving error

Hi experts,

I have a piece of code like this:

DATA: object_ref TYPE REF TO application.

START-OF-SELECTION.

CREATE OBJECT object_ref.

I have created a local class "application".

The program is giving a syntax error: "OBJECT_REF" is not an object reference.

What could be the problem and how to solve it?

Regards,

Ajay.