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st: xtabond2 and parameter restrictions


From   "julian estevez" <[email protected]>
To   [email protected]
Subject   st: xtabond2 and parameter restrictions
Date   Wed, 06 Jul 2005 20:22:44 -0400

Dear Statalisters:

I am estimating a Dynamic Panel Data model using xtabond2

It is of the form:

Dependent variable(i,t) = constant +b1 X1(i,t) + b2 X1(i,t-1)+ b3 X2(i,t) + b4 X2(i,t-1) + b5 Dependent variable(i,t-1) + disturbance

I wonder how I can estimate the model but including the following parameter restrictions:

b5 b1 = b2
b5 b3 = b4

Ignoring these restrictions mean that I am loosing information because I am overparametrizing the model. I would greatly appreciate if somebody could tell me how to combine parameter restrictions with xtabond2, or some other solution to my problem

Regards

Julian

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