I am estimating an old-fashioned Phillips curve using a polynomial distributed lag with a zero end-point restriction on lagged inflation. The data are quarterly and I have 24 lags of inflation.
In addition to the PDL restriction I wish to restrict the sum of the lagged coefficients to equal 1.
equation Phillips.ls pi c pdl(pi(-1),23,3,2) (and other independent variables including the unemployment gap)
In EViews notation, the coefficients on lagged inflation are c(5) .... C(28) and I wish to impose the restriction that
the sum of these coefficients equals 1:
C(5)+c(6)+c(7)+...+c(28)=1
is there a way to do that in EViews?
Thanks!
PDL with coefficient restrictions take 2
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