Dear Stata users,
I have the following issue: I have to estimate a system of simultaneous equations with non-linear constraints of form 0 < a < 1 using OLS.
Example 2 in https://www.stata.com/support/faqs/s...nstraints/#ex2 shows how to impose non-linear constraints of the form 0 < a < 1 using nl command that makes use of the inverse logit function.
In my case, I have to run a pair of regressions simultaneously with a non-linear constraint of the form 0 < [eqn1]beta + [eqn2]beta < 1.
Originally, I used reg3 and imposed a linear constraint of the form [eqn1]beta + [eqn2]beta = 1 but sometimes I got negative coefficients because I could not also impose the positiveness of the estimated coefficients.
So, I would like to know if there is a trick or a way you can suggest to run simultaneous regression equations with non-linear equations of form 0 < a < 1 without using any reparameterization of the coefficients as nl does?
Thank you,
Anna
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