DOLS with a restricted coefficient

[maragloria]

Hi there,

I'm trying to estimate a equation with a coefficient restricted to 1 (X1 below).

In OLS, I'm doing: Y = X1 + C(2)* X2 + C(3)*X3 + C(1)
In VECM, I use the "VECM restrictions" box to set B(1,1)=1, B(1,2)=-1

How could I set X1 to 1 using DOLS (or FMOLS)? If I use the same specification as the OLS above, I get an error message.

Many thanks

[Elderfield.A]

Couldn't you re-specify your dependent variable to Y-X1?

[maragloria]

It works. Thank you!