Restricting Coefficient = 1

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learner
Posts: 13
Joined: Sat Jun 27, 2009 7:09 am

Restricting Coefficient = 1

Postby learner » Sat Mar 26, 2011 2:49 pm

Hi

I am estimating the following equation in EViews 6 using GMM. Theory tells me that it should be equal to 1 so I want to restrict the coefficient c(4) = 1.

Would you please guide me how to restrict the coefficient equal to 1 in EViews. Of course, it should not be confused with "sum of coefficients equal to one".


(c(3)*meh - (1 - c(3))*(1-c(3)*c(4))*income - c(3)*c(4)*meh(1) - c(9)*lereg) =0 @ meh(-1 to -4) income(-1 to -4) lereg(-1 to -4)

Thanking you in advance.
Learner

EViews Gareth
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Posts: 13585
Joined: Tue Sep 16, 2008 5:38 pm

Restricting Coefficient = 1

Postby EViews Gareth » Sat Mar 26, 2011 3:58 pm

Replace c(4) with 1

learner
Posts: 13
Joined: Sat Jun 27, 2009 7:09 am

Re: Restricting Coefficient = 1

Postby learner » Sun Mar 27, 2011 3:19 pm

Thank you very much Sir. It works


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