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Restriction

Posted: Thu Aug 11, 2011 9:26 am
by zsalimian
hi every one

How can I impose the sum up to one on coefficient before estimation?

I have C(1) ....C(5) as parameter in my panel system and I want to know that should I write C(1)+C(2)....+C(5)=1 as a equation in my system or not?


Thanks

Re: Restriction

Posted: Thu Aug 11, 2011 9:44 am
by startz
No. System only wants equations about the data.

One thing to do is to replace c(5) everywhere in your system with (1-c(1)-c(2)-c(3)-c(4)).