* R. Carter Hill, William E. Griffiths and Guay C. Lim, * Principles of Econometrics, Fourth Edition, Wiley, 2011. * Chapter 7.1.3 The University Effect on House Prices READ (utown.dat) / names STAT / ALL * Generate an interaction variable GENR USQFT=SQFT*UTOWN * Estimate a price equation - Table 7.2, p. 264 OLS PRICE UTOWN SQFT USQFT AGE POOL FPLACE * Estimate the $ price per square foot for houses near the university. * See the results reported on p. 264. * Be careful about units of measurement: * PRICE is measured in thousands of dollars and * SQFT is measured in hundreds of square feet * On the TEST command the variable names represent the coefficients TEST 10*(SQFT+USQFT) * Estimate the price per square foot for houses in other areas TEST 10*SQFT STOP