The RATS Software Forum

Dear Tom:

How to implement constraints on coefficient size in time-varying coefficient models, such as [0,0.1]. Or, in time series decomposition, the boundary of a certain component is restricted, such as cycle [-0.1, 0.1] or [-.0.05,0.05]

Best Regard
Hardmann

There is no good way to do that---at best, there are some ways to approximate it. That's covered in section 9.5 of the SS/DSGE course and is used in the Matheson-Stavrev replication.

Dear Tom:

Thanks

Best Regard
Hardmann