Hello!
I am trying to replicate the results of Section III pp. 11-13 of the paper ENERGY-SAVING TECHNICAL CHANGE (https://www.nber.org/system/files/working_papers/w18456/w18456.pdf) using ML approach.
I am following lecture notes 79. Maximum Likelihood Estimation, in particular section 79.6. Maximum Likelihood Estimation with statsmodels which is quite helpful.
My issue is if it is possible to use the method described in the notes for the system as presented in the paper p.12; Maybe I am approaching the problem in the wrong way. Any guidance is appreciated.
Thanks