Re: [Gretl-users] Cost function estimation--system of equations
On Mon, 23 Aug 2010, Carlos Elias wrote:
It is my first time using Gretl, I love it.
Glad you like it!
I am trying to estimate a cost function system of equations
(Jorgensen 1986). I am imposing restrictions on the parameters
to impose cost exhaustion and homegeneity conditions...
I would really appreciate it if you can look at my Gretl instructions and
tell me if I am making any mistakes--when I ran the model I get no results.
These are the instructions:
system
equation S_Dep l_P_Dep l_P_labor l_Y
equation l_Tot_cost l_P_Dep l_P_labor l_Y sq_l_P_Dep l_Dep_labor l_S_labor
l_Dep_Y l_labor_Y sq_l_Y
end system
You're almost there, but take another look at the help for the
"system" command. For anything to happen you have to specify
either an estimation method or a name by which the system can be
referenced. E.g.
system method=sur
OR
costmodel <- system
If you give a method you'll get estimates right after "end
system"; if you give a name you get the estimates by saying. e.g.,
estimate costmodel method=sur
See also the example script klein.inp (under /File/Script
files/Practice file).
Allin Cottrell