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st: nonlinear least squares


From   Federica Maiorano <[email protected]>
To   [email protected]
Subject   st: nonlinear least squares
Date   Wed, 12 Jan 2005 13:34:14 +0100 (CET)

Dear Stata users,

I am trying to estimate the following function by
nonlinear least squares:

Lnoutput = $A+$B*lnlabourhours + $D*lnmaterials +
$T*OtherCapital + $X*ln(Inv2003 + Inv2002/(1+$G) +
Inv2001/(1+$G)^2 + Inv2000/(1+$G)^3 + �)

After running a do file to define the programme nltest
and set initial values for the parameters, I estimate
the model with these results:
- Stata takes �parameter G as constant term in model�.
Also, it does not compute standard error, t statistic
etc.
- The value of G is 243,827, while the starting value
was 0.03!

It would be great if someone could help me understand
why this happens.

Thanks in advance for any help.
Federica


		
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