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Re: RE: st: RE: GMM estimation: restricting parameter estimates


From   Christopher Baum <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: RE: st: RE: GMM estimation: restricting parameter estimates
Date   Tue, 25 Jun 2013 14:25:22 +0000

<>
On Jun 25, 2013, at 8:33 AM, Bley wrote:

> I am trying to estimate a growth model using also gmm estimation. I would like to set the sum of three parameters equal to one. could you please help me in this matter. 

That one's easy. If b1 + b2 + b3 = 1, then you can only estimate two of them, and the third you substitute as (1 - b1 - b2).

Kit

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                            An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
 An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html
                                                                                                     http://www.crup.com.cn/Item/111779.aspx     


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