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