Question: Consider the following distributed-lag model: Assume that βi can be adequately expressed by the second-degree polynomial as follows: β i = a 0 + a

Consider the following distributed-lag model:

Y, = a + BoX, + BiX,-1 + B2X1–2 + B3X1-3 + B4X1–4 + u;


Assume that βi can be adequately expressed by the second-degree polynomial as follows:

βi = a0 + a1i + a2i2

How would you estimate the ’s if we want to impose the restriction that β0 = β4 = 0?

Y, = a + BoX, + BiX,-1 + B2X12 + B3X1-3 + B4X14 + u;

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