* Koyck Model for Aggregate Consumption in Sri Lanka
*
* Keywords:
* regression, koyck, aggregate, consumption, sri lanka
*
* Description:
* We illustrate how to estimate a Koyck Model for the Aggregate
* Consumption Expenditure in Sri Lanka
*
* Author(s):
* Skif Pankov
*
* Source:
* Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition
* McGraw-Hill International Edition, Chapter 17, Example 17.10 (page 643)
*
sample 1 27
* Reading the datafile and naming variables
read(data_17.10.shd) c x
* Running an OLS regression of c on itself lagged and x, specifying
* to display resudual statistics and saving estimated coefficients in a
* variable beta
ols c c(1.1) x / rstat coef = beta
* Saving the short-run impact of c as delta
gen1 delta = 1-beta:1
* Displaying delta
print delta
* Generating the long-run impact of x on c, saving it a lrmpc
gen1 lrmpc = (beta:2)/delta
* Displaying lrmpc
print lrmpc
stop