* PS7.5, using DATA7-2, for the application in Section 7.4 
*
READ(data7-2) WAGE EDUC EXPER AGE GENDER RACE CLERICAL MAINT CRAFTS
GENR SQEDUC=EDUC**2
GENR SQEXPER=EXPER**2
GENR SQAGE=AGE**2
GENR EDGEN=EDUC*GENDER
GENR EDRACE=EDUC*RACE
GENR EDCLER=EDUC*CLERICAL
GENR EDMAINT=EDUC*MAINT
GENR EDCRAFT=EDUC*CRAFTS
GENR AGEGEN=AGE*GENDER
GENR AGERACE=AGE*RACE
GENR AGECLER=AGE*CLERICAL
GENR AGEMAIN=AGE*MAINT
GENR AGECRFT=AGE*CRAFTS
GENR EXPGEN=EXPER*GENDER
GENR EXPRACE=EXPER*RACE
GENR EXPCLER=EXPER*CLERICAL
GENR EXPMAIN=EXPER*MAINT
GENR EXPCRFT=EXPER*CRAFTS
GENR LNWAGE=LOG(WAGE)
*
* Estimate Basic Model.
*
* The LOGLIN option must be specified as the dependent variable is the Log
* form and the independent variables are in Linear form.  The predicted
* values of the dependent variable, LNWAGE, is saved in the vector called
* UHAT to be used later.
*
OLS LNWAGE EDUC EXPER AGE / LOGLIN RESID=UHAT
GENR DFR=$DF
GENR UT=UHAT
*
* Estimate the Auxiliary Regression for the LM Test.
* The "&" is used to indicate to SHAZAM that the command at hand continues
* onto the next line beginning at Column 1.
*
OLS UT EDUC EXPER AGE GENDER RACE CLERICAL MAINT CRAFTS SQEDUC SQEXPER &
SQAGE EDGEN EDRACE EDCLER EDMAINT EDCRAFT AGEGEN AGERACE AGECLER AGEMAIN &
AGECRFT EXPGEN EXPRACE EXPCLER EXPMAIN EXPCRFT
GENR DFU=$DF
GENR NR=DFR-DFU
GENR LM=$N*$R2
PRINT LM
*
* Model 1 of Table 7.5.
*
OLS LNWAGE EDUC EXPER AGE GENDER RACE SQEDUC SQEXPER SQAGE EDGEN EDCLER &
EDMAINT EDCRAFT AGEGEN AGERACE AGEMAIN AGECRFT EXPRACE EXPCRFT / ANOVA
*
* Model 2 of Table 7.5. 
*
OLS LNWAGE EDUC EXPER SQEDUC SQAGE EDGEN EDCLER EDMAINT EDCRAFT AGEMAIN & 
AGECRFT  / ANOVA
*
* Model 3 of Table 7.5.
*
OLS LNWAGE EDUC EXPER AGE GENDER RACE CLERICAL MAINT CRAFTS SQEDUC SQEXPER &
SQAGE EDGEN EDRACE EDCLER EDMAINT EDCRAFT AGEGEN AGERACE AGECLER AGEMAIN &
AGECRFT EXPGEN EXPRACE EXPCLER EXPMAIN EXPCRFT  / ANOVA
*
DELETE / ALL
STOP