* Reference: Chapter 16 of * Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, * South-Western College Publishing, 2000. SAMPLE 1 114 READ (OPENNESS.shd) open inf pcinc land oil good * Examples 16.4 and 16.6 * Log transformations GENR lpcinc=LOG(pcinc) GENR lland=LOG(land) * Estimate the reduced form equation OLS open lpcinc lland * Equation (16.26), p. 514 2SLS inf open lpcinc (lland lpcinc) * Compare 2SLS with OLS OLS inf open lpcinc STOP