* OLS Model for the Consumption Function * * Keywords: * regression, ols, consumption, function * * Description: * We illustrate how to estimate a Linear OLS Model for Consumption Function * using different time periods of the sample * * Author(s): * Noel Roy * Skif Pankov * * Source: * William H. Greene, Econometric Analysis - 7th Edition * Pearson International Edition, Chapter 3, Example 3.2 (page 81) * sample 1 11 * Reading the datafile and naming the variables, specifying to ignore the * first line of the file read (TableF2-1.shd) year x c w / SKIPLINES=1 LIST * Running an OLS regression of c on x using the whole sample, specifying to * display residual statistics in the output ols c x / rstat * Omitting the war years (1942-1945) from the sample and re-running * an OLS regression of c on x with residual statistics sample 1 2 7 11 ols c x / rstat * Using the whole sample and a war dummy w in an OLS OLS regression of * c on x with residual statistics sample 1 11 ols c x / rstat stop