Only by using a parameterisation that ensures that your parameters obey
these rules. On the face of fit, the second rulw is easier than the
first.
On the first, the model is a pretty lousy fit if any parameter has the
wrong sign. These models, as I understand it, don't have that many
parameters and are of relatively simple functional form.
Nick
[email protected]
Rodolfo Coelho Prates
I estimated a Cobb-Douglas function with additive error (nl command),
the
coeficients are negative and the sum are larger than one, in some cases.
I need that the coeficients are larger than zero and the sum of the
coeficients are equal to one. How can I estimate the function with
restriction in Stata?
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