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
Restricting Coefficient = 1
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EViews Gareth
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Restricting Coefficient = 1
Replace c(4) with 1
Re: Restricting Coefficient = 1
Thank you very much Sir. It works
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