Dear All,
It is my first time using Gretl, I love 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
am using a cross sectional dataset of electric power plants in the US--I am
researching the impact on cost of generation of availability of water and
the selection of cooling systems.
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:
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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
restrict
b[1,1] = b[2,2]
b[1,2] = b[2,5]
b[1,3] = b[2,6]
b[1,4] = b[2,8]
b[2,2] + b[2,3] = 1
b[2,8] + b[2,9] = 0
b[2,5] + b[2,6] = 0
b[2,6] + b[2,7] = 0
end restrict
estimate
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Cheers and thanks,
Carlos