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How do you do an unrestricted regression and restricted?

Posted: Thu Mar 27, 2014 7:37 am
by jisoo95
I am being asked to provide EVIEWS output for the unrestricted model and the restricted model, how do I go about doing this?

Thanks.

Re: How do you do an unrestricted regression and restricted?

Posted: Fri Mar 28, 2014 12:29 am
by nishantvats12
Do you mean an unrestricted VAR model or a general model with some kind of restriction imposed on it?

Re: How do you do an unrestricted regression and restricted?

Posted: Fri Mar 28, 2014 7:47 am
by jisoo95
Do you mean an unrestricted VAR model or a general model with some kind of restriction imposed on it?
Well my tutor has told me the unrestricted regression has all variables in and the restricted model does not have the restricted variables in (zero coefficient restrictions).
Does that sound right?

Re: How do you do an unrestricted regression and restricted?

Posted: Mon Mar 31, 2014 2:25 am
by nishantvats12
It can be easily done by going first for your restricted regression and then the unrestricted one followed by a restrictive f test.