Restricting the ccoefficients to 0

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Sci_Fi_Morning
Posts: 2
Joined: Mon Mar 28, 2011 8:10 am

Restricting the ccoefficients to 0

Postby Sci_Fi_Morning » Mon Mar 28, 2011 8:32 am

Hi all,

Newbie Eviews user here.

anyways i have an assignment at the moment. consider this simple model for example:

delta u_t = u_t-1*I*p_1 + (1 - i)*p_2*u_t-1

where p_1 and p_2 are coefficients

Now i am meant to test the null hypothesis as:

p_1 = p_2 = 0

and the alternative hypothesis is:

p_1 < 0 and p_2 < 0

now i need to get the F-ratio value.

Therefore to do that i need the sum of squared residuals for the unrestricted and the restrcited model above.

Does anyone now how to get the sum of squared errors for the coefficients- p_1 and p_2 = 0? Like wat instructions to take so that c(1) and c(2) which represent p_1 and p_2, are equal to 0?

Please im beating myself up over this and nothing is coming through.

And, we cant use the Wald test btw.

Can u give me a step by step instruction?

Thank you guys.

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