but how does that work?
Can I assumer the first set of pi-s to be a simple moving average model based on past four quarters? and then do the regression?
Search found 2 matches
- Sat Oct 26, 2013 10:42 am
- Forum: Estimation
- Topic: placing restrictions on coefficients sum to one
- Replies: 4
- Views: 11097
- Thu Oct 24, 2013 12:23 pm
- Forum: Estimation
- Topic: placing restrictions on coefficients sum to one
- Replies: 4
- Views: 11097
placing restrictions on coefficients sum to one
Hi there, I am quite new to eviews and I have been trying to estimate a model for my thesis. This model is a PHillips Curve model and I want to put restrictions on previous π_t sum to one. For more clarification I am posting ym model here.# π_t=1/4 ( π_(t-1)+π_(t-2)+π_(t-3)+π_(t-4) )+α(u-u*)t+ε_t wh...