how to add linear restriction
Posted: Thu Nov 14, 2013 9:17 am
hi, i have simple question
how to add a linear restriction in a model
example: cobb douglas production function f(K,L)=A*[K^c(2)]*[L^c(3)]
y=f(K,L); A=c(1); log(K)=x; log(L)=z
y=c(1)+c(2)*x+c(3)*z
1/i would like to restricted c(3)=0,2 at first and show c(1) c(2) c(3) in output equation
2/second restriction c(2)+c(3)=1 and show c(1) c(2) c(3) in output equation
have you any idea
how to add a linear restriction in a model
example: cobb douglas production function f(K,L)=A*[K^c(2)]*[L^c(3)]
y=f(K,L); A=c(1); log(K)=x; log(L)=z
y=c(1)+c(2)*x+c(3)*z
1/i would like to restricted c(3)=0,2 at first and show c(1) c(2) c(3) in output equation
2/second restriction c(2)+c(3)=1 and show c(1) c(2) c(3) in output equation
have you any idea