I have this regression model
g(2:end)=k1+ k2*(g(1:end-1)-k1) + error(2:end)*k3 ;
k1, k2 are intercept and slope parameters respectively and k3 is the standard deviation
Also the following restrictions must be satisfied: |k2|<1 and k3>0.
Is there a way to estimate such a model, given that 'error' and 'g' are known?
Thanks in advance