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Having problems estimating a double log function

Posted: Fri Jul 10, 2009 6:51 am
by chap
Hello everybody,

Right now I am working on the following:

I have had demand function (Cobb-Douglas-Type): M = AY^beta1 * R^beta2.
M, Y and R are variables. A is the parameter.

In turning it into a linear form I used a log. Making the regression model:

ln(M) = ln(A) + ln beta1 (Y) + ln beta 2(R)

Now, I have problems estimating this regression in eViews 4.1. Until now I entered: Log(M)=Log(C)+Log(Y)+Log(R). Whenever I try that I get the error "Index missing for coefficient c".
Generally speaking it is the first time that I use the LOG-Function in eViews and try to LOG the constant intercept.

What am I doing wrong?

Thank you for your support.

Re: Having problems estimating a double log function

Posted: Fri Jul 10, 2009 7:03 am
by startz
C isn't a variable.

Try

Code: Select all

ls log(M) c log(Y) log(R)
or

Code: Select all

ls y=c(1)*Y^c(2)*R^c(3)

Re: Having problems estimating a double log function

Posted: Sat Jul 11, 2009 9:33 am
by chap
THANK YOU MAN! Worked just fine...just as I said - it was my mistake.

thanks again.