Hello,
I'm looking to run estimate a model that looks like this :
Y = (intercept + B1*X1 + B2*X2)*B3*X3
Where B1, B2 and B3 are the coefficients for the categorical variables X1, X2 and X3. Note that I already know the coefficients for each modality of X3 (it is a Bonus variable whose coefficients are under the form : 0.5; 0.51 ; ... ; 0.99).
I'm not sure what I should to estimate this kind of model. Until now i was using a GLM. My idea was to transform the Y variable into a Y2=Y/(B3*X3) and then run the GLM where the X3 variable is specified but there would be no need to calculate the B3 coefficients...
But maybe an other specification or procedure would be better.
I hope i was clear enough. Thank you for your help. Have a good day.
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