Dear all,
I would like to run the following nonlinear regression:
Y = a1 + a2 * X +a3 * (1 - dk) * (b**2 - 2 * b * x + x**2) + u
with dk = 1 if x <= b and dk = 0 if x > b
That is, there is a variable (dk) which depends on a parameter (b) which itself
is still to be estimated.
The background is: I would like to get a linear regression between x=0 and x=b,
but a nonlinear regression for x>b. And I don't know the value of b in advance.
The regression should estimate the value of b.
I would be very glad about any hints how to do this in Stata.
Best regards,
Michael
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