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I'm estimating a Phillips Curve Model - and, as such, need to take into account the unemployment Gap, which is the difference between actual unemployment and the Nairu (here, Nairu is the unobservable variable).

I need to impose the following constraint: some of the coefficients (say, beta 1 and beta 2) in the Z matrix (which relationates to the Nairu) must be the same that in the D matrix (which accounts for the unemployment). However, it doesn't seem possible to impose such a constraint simultaneously in the Z and D matrix.

Can you guys help me?

I've tried setting the same "names" for the coefficients in the Z and D matrix, but that didn't work.

Pietro Oliviéri Valelongo
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  • It looks like you're new to SO; welcome to the community! If you want great answers quickly, it's best to make your question reproducible. This includes sample code you've attempted, listing non-base R packages, any errors/warnings received, what type of output or outcome you’re expecting, and sample data like the output from `dput()` or `reprex::reprex()` and any libraries you are using. Check it out: [making R reproducible questions](https://stackoverflow.com/q/5963269). – Kat Nov 19 '22 at 16:45

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