Some econometric models cannot be made linear in parameters.
The solution is to estimates the parameter by nonlinear techniques. Almost
any function that can be written in closed form can be incorporated in a nonlinear
Unfortunately nonlinear models could not be estimated by analytical.
There are only numerical methods, which does not guarantee to find
an optimum. Moreover, nonlinear estimation costs more computing time.
This Add-In uses the Solver Add-In to solve the model
iterative. I think the Solver Add-In is a powerful tool to optimise
a nonlinear system. Make sure that the Solver Add-in is installed
All links will be open in a new window
a description of nonlinear regressions at wikipedia. (HTML)
The nonlinear estimation (nls) Add-In was written
by Kurt Annen. This program is freeware. But I would highly appreciate
if you could give me credit for my work by providing me with information
about possible open positions as an economist. My focus as an economist
is on econometrics and dynamic macroeconomics. If you like the program,
please send me an email.