I have a pool set (10 years, 3 variables X Y Z, 20 cross-section). The model is like:
Y=a+b*X+u
Z=c+d*X+v
I have estimated the two equations seperatly by pooling, but the point is that I need to put a restriction like b+d=c, c is a constant, but I dont know how ..
can anyone help me.......
Many Thx!
Restriction on Coeffi of 3 pooling equations
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Restriction on Coeffi of 3 pooling equations
Assuming you're doing simple least squares you could Convert the pool to a panel, then use the system object to estimate the equations
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