Consider the following nonlinear model with multiplicative errors:
Y = B0 x X1^B1 x X2^B2 x X3^B3 x X4^B4e
B1 + B2 = 1
B3 + B4 = 1
a. Show how you would obtain the coefficient estimates. Coefficients restrictions must be satisfied. Show all your work and explain what you are doing.
b. What is the constant elasticity for Y versus X4? Show all your work.