### Random effects estimation with an explicit formulation of equation

Posted:

**Wed Jul 10, 2019 12:11 am**Dear Colleagues,

I am currently trying to estimate a set of panel equations with explicit restrictions on parameter values in a following form:

log(Y) = c(1)*log(X) + c(1)*log(Z) + (1-c(1))*log(X0) + (c(1)-1)*c(2)*time + c(3).

However, when I try to include random cross-section effects, EViews generates the following message:

By the way, such a problem is not observable in the case of fixed effects.

Does this imply that the random effects estimation with explicit parameter restrictions is not possible in EViews?

I am currently trying to estimate a set of panel equations with explicit restrictions on parameter values in a following form:

log(Y) = c(1)*log(X) + c(1)*log(Z) + (1-c(1))*log(X0) + (c(1)-1)*c(2)*time + c(3).

However, when I try to include random cross-section effects, EViews generates the following message:

**Random effects may not be estimated in specifications**

involving an explicit equation. You must specify your

equation as a dependent variable followed by a list of

regressors.involving an explicit equation. You must specify your

equation as a dependent variable followed by a list of

regressors.

By the way, such a problem is not observable in the case of fixed effects.

Does this imply that the random effects estimation with explicit parameter restrictions is not possible in EViews?