Setting manual coefficients

[Pete Willemsen]

For a hypothetical case in class the following question is asked:

We have the following model: Y = β1+ β2*Area + β3Labor + β4*Fertilizer + u

Each labor day increases production with 0.01 ton, so β3=0.01, show how to estimate β2 and β4.
(Do not use Stata's possibility to do linear regression with linear restrictions)

The following variables are used in Stata:

prod (for Y)
area (for Area)
L (for labor)
F (for fertilize)

How can we fix a coefficient to 0.01, or are there other ways to solve this?

Thanks in advance!

With kind regards,
Pete

[Scott Merryman]

regress (Y - 0.01Labor) = Area, Fertilizer.

[Pete Willemsen]

Thank you very much Scott, it worked! I've got a new question though:

Y = β1+ β2*Area + β3Labor + β4*Fertilizer + u

This time its given that B4=3*B3.
Which model should you use? Give the estimates of B2, B3 and B4.