* R. Carter Hill, William E. Griffiths and Guay C. Lim, * Principles of Econometrics, Fourth Edition, Wiley, 2011. * Chapter 4.4 Polynomial Models (pp. 149-151) SAMPLE 1 48 READ (wa_wheat.dat) / names * Generate a time index = 1, 2, ... , 48 GENR TIME=TIME(0) * Simple linear regression OLS YIELD TIME / GRAPH * Quadratic term GENR T2=TIME**2 OLS YIELD T2 / GRAPH * Cubic term GENR T3=TIME**3 OLS YIELD T3 / GRAPH * Rescale the variable T3 (Estimation results p. 151) GENR Z3=T3/(10**6) OLS YIELD Z3 / GRAPH * Chapter 4.5.1 A Growth Model (pp. 152-3) * Estimate a model with a log-dependent variable GENR LNY=log(YIELD) OLS LNY TIME / LOGLIN COEF=B * Use the slope estimate to obtain an annual percentage growth rate. GEN1 RATE=100*B:1 PRINT RATE STOP