Hi, I am facing a problem replicating the article 'https://doi.org/10.1016/j.euroecorev.2021.103911' with getting the parameters of the supply system of the normalized CES production function by using the nlsur function, here is the screenshot of the supply system:
and here is my state code:
local gl {gamal}*tbar*((t/tbar)^{lamdal}-1)/{lamdal}
local gk {gamak}*tbar*((t/tbar)^{lamdak}-1)/{lamdak}
nlsur (log(ya/{xi})=log((thetabar*(exp(gk)*ka)^(({sigma}-1)/{sigma})+(1-thetabar)*(exp(gl)*la)^(({sigma}-1)/{sigma}))^({sigma}/({sigma}-1)))) ///
(log(1-theta)=log((1-thetabar)*(exp(gl)*({xi}*la/ya))^(({sigma}-1)/{sigma}))) ///
(log(theta)=log(thetabar*(exp(gk)*({xi}*ka/ya))^(({sigma}-1)/{sigma}))), variable(ya ka la t theta) ///
initial (sigma 1.50 xi 1.00 lamdal 1.00 lamdak 1.00 gamal 0.04 gamak 0.02)
After running the data I got the 'o. operator not allowed' error. I don't know what happened thanks for any help
and here is my state code:
local gl {gamal}*tbar*((t/tbar)^{lamdal}-1)/{lamdal}
local gk {gamak}*tbar*((t/tbar)^{lamdak}-1)/{lamdak}
nlsur (log(ya/{xi})=log((thetabar*(exp(gk)*ka)^(({sigma}-1)/{sigma})+(1-thetabar)*(exp(gl)*la)^(({sigma}-1)/{sigma}))^({sigma}/({sigma}-1)))) ///
(log(1-theta)=log((1-thetabar)*(exp(gl)*({xi}*la/ya))^(({sigma}-1)/{sigma}))) ///
(log(theta)=log(thetabar*(exp(gk)*({xi}*ka/ya))^(({sigma}-1)/{sigma}))), variable(ya ka la t theta) ///
initial (sigma 1.50 xi 1.00 lamdal 1.00 lamdak 1.00 gamal 0.04 gamak 0.02)
After running the data I got the 'o. operator not allowed' error. I don't know what happened thanks for any help
