EViews.com

Hi,

I am currently having issue in running a linear OLS by setting the restriction on the coefficient.
Appreciate if someone would be able to assist. I using E-view 7 at the moment.

Equation: y = c + B1X1 + B2X2 + B3X3+ B4X4 + B5X5 + e
X are dummy variable and B is the coefficient for X dummy variable respectively,
while e is error term.
My target is to run the above regression in programming by Restricting B1*W1 + B2*W2 + B3*W3 + B4*W4 +B5*W5 = 0.
#W refers to weight.

Appreciate if someone familiar with this offers some advices and guidance.
Thanks a million in advance.

Solve the restriction to place B5, say, on the left. Then substitute in to the original equation, replacing B5 with your expression.

Thanks startz for your suggestion.
Just to confirm by doing so, i would lost the coefficient, B5 from the original equation as it has been substituted by the restricting equation. After the estimation, i would only obtain a constant, B1, B2, B3, B4 and an error term.
y = c + B1X1 + B2X2 + B3X3+ B4X4 + B5X5 + e

Is it possible that i could estimate the above equation and obtain the coefficients for all variables?

Thank you.

The point is that in your original equation you don't really have a B5. You've restricted it away.