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Consider the following model on panel data:

$$Y_{it}=\alpha+\frac{\beta_i}{\beta_i+\gamma} X_{1,it} + \frac{\gamma}{\beta_i+\gamma} X_{2,it},$$

where $i$ is a cross-sectional unit index and $t$ is time. Further, $Y_{it}>0$. What would be the best way to estimate the parameters of this model?

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  • $\begingroup$ How many time points? $\endgroup$
    – kjetil b halvorsen ♦
    Commented Feb 25, 2021 at 20:13
  • $\begingroup$ Around 1000 time points, 100 cross-sectional units. $\endgroup$
    – Marius Zoican
    Commented Feb 25, 2021 at 23:04
  • $\begingroup$ Where is the error term? To discuss estimation methods we need a full model specification, with distributions, or at least an error specification. $\endgroup$
    – kjetil b halvorsen ♦
    Commented Apr 4, 2021 at 1:19

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