I think you'll need the offset option.

ln( Y ) = ln( K ) + b1 ln( X1 ) + b2 ln( X2 / X3 ) + 1 ln( 1 / X3 )

as in:

glm( log(Y) ~ log( X1 ) + I(log( X2 / X3 )),
     offset=I(log( 1 / X3 )))

-tgs

On Tue, Apr 20, 2010 at 7:14 AM, rajiv guha <dabruha@gmail.com> wrote:

> I am trying to estimate a demand function:
> Y=K * X1^b1 * X2^b2 * X3 ^(-1-b1)
>
> in log form:
> ln Y = ln K + b1 ln X1 + b2 ln X2 + (-1-b1) ln X3
>
> As the regression coefficients are related for 2 of the regressors, I am
> not
> sure of the appropriate methodology or function in R to handle this. Any
> hints?
>
> thx,
> Tarun
>
>        [[alternative HTML version deleted]]
>
> ______________________________________________
> R-help@r-project.org mailing list
> https://stat.ethz.ch/mailman/listinfo/r-help
> PLEASE do read the posting guide
> http://www.R-project.org/posting-guide.html
> and provide commented, minimal, self-contained, reproducible code.
>

	[[alternative HTML version deleted]]

