* Linear OLS Model for Structural Differences in Savings * * Keywords: * regression, ols, linear, dummy, interaction, ancova, savings, income * * Description: * We illustrate how to estimate an OLS Models with Quantitative and * Interaction variables for Structural Differences in US Savings * * Author(s): * Skif Pankov * * Source: * Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition * McGraw-Hill International Edition, Chapter 9, Example 9.4 (page 287) * sample 1 26 * Reading the datafile and naming variables read(data_9.4.shd) sav inc d * Generating an interaction variable dinc by multiplying inc with a dummy genr dinc = d*inc * Running an OLS regression of sav on inc, d and dinc, specifying to show * residual statistics ols sav inc d dinc / rstat * Running an OLS regression of sav on inc, specifying to use the first 12 * observations only ols sav inc / beg = 1 end = 12 * Running an OLS regression of sav on inc, specifying to use observations * from number 13 to 26 only ols sav inc / beg = 13 end = 26 stop