* Heteroskedasticity in OLS Model for Teachers' Salaries * * Keywords: * regression, ols, log, heteroskedasticity, white, test, errors, school, * teachers, salaries * * Description: * We illustrate how to estimate a Log-Log OLS Model for School Teachers' * Salaries, test it for Heteroskedasticity and use White's Standard Errors * * Author(s): * Skif Pankov * * Source: * Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition * McGraw-Hill International Edition, Chapter 11, Example 11.11 (page 399) * sample 1 94 * Reading the datafile and naming variables read(data_11.11.shd) sal finc pval * Generating logs of variables genr lnsal = log(sal) genr lnfinc = log(finc) genr lnpval = log(pval) * Running an OLS regression of lnsal on lnfinc and lnpval ols lnsal lnfinc lnpval * Conducting heteroskedasticity tests on the regression just estimated diagnos / het * Runnig the first OLS regression, specifying to use White's standard * errors ols lnsal lnfinc lnpval / hetcov stop