Hi,
I'm having some trouble applying constraints for my regression that should replicate a cash flow constraint.
I would like to create similar beta coefficient constraints as shown in the attached picture.
The idea is that the cash flow constraint (dSt + dLt = dAt + Dt - Yt) should hold for each year.
Where:
dSt = book value of shares issued
dLt = change in total liabilities
dAt = Investment
Dt = Dividends
Yt = Earnings
The sum of the intercepts in the dSt and dLt regressions must equal 0 each year, the slopes for Yt must sum to -1, and the sum of the slopes for dAt and Dt must each be 1.
I have attempted applying the methodology presented here: https://www.statalist.org/forums/for...-in-regression as well as here: https://www.stata.com/support/faqs/s...nts/index.html without any luck.
It would be greatly appreciated if someone could point me in the right direction on this.
Brage
I'm having some trouble applying constraints for my regression that should replicate a cash flow constraint.
I would like to create similar beta coefficient constraints as shown in the attached picture.
The idea is that the cash flow constraint (dSt + dLt = dAt + Dt - Yt) should hold for each year.
Where:
dSt = book value of shares issued
dLt = change in total liabilities
dAt = Investment
Dt = Dividends
Yt = Earnings
The sum of the intercepts in the dSt and dLt regressions must equal 0 each year, the slopes for Yt must sum to -1, and the sum of the slopes for dAt and Dt must each be 1.
I have attempted applying the methodology presented here: https://www.statalist.org/forums/for...-in-regression as well as here: https://www.stata.com/support/faqs/s...nts/index.html without any luck.
It would be greatly appreciated if someone could point me in the right direction on this.
Brage
Attached Files
