* OLS Model for Cobb-Douglas Production Function
*
* Keywords:
*     regression, multiple, ols, log, cobb-douglas, production
*
* Description:
*     We illustrate how to estimate an OLS Regression Models for Cobb-Douglas
*     Production Function
*
* Author(s):
*     Skif Pankov
*
* Source:
*    Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition
*    McGraw-Hill International Edition, Chapter 7, Example 7.3 (page 208)
*
sample 1 51

* Reading the datafile and name the variables
read (data_7.3.shd) gdp lab cap

* Generating logs of variables
genr y = log(gdp)
genr x1 = log(lab)
genr x2 = log(cap)

* Running an OLS regression - y on x1 and x2, specifying that it is a log-log regression
* and displaying residual statistics
ols y x1 x2 / loglog rstat

stop