* Heteroskedasticity in OLS Model for Consumption * * Keywords: * regression, ols, linear, heteroskedasticity, goldfeld-quandt, test, * consumption, expenditure, income * * Description: * We illustrate how to estimate a linear OLS Model for Consumption Expenditure * and use Goldfeld-Quandt Heteroskedasticity Test * * Author(s): * Skif Pankov * * Source: * Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition * McGraw-Hill International Edition, Chapter 11, Example 11.4 (page 383) * sample 1 30 * Reading the datafile and naming variables read(data_11.4.shd) y x * Sorting the dataset by variable x in ascending order sort x y * Running an OLS regression of y on x ols y x * Conducting a Goldfeld-Quandt test on the previous regression - it is * initiated in a chowtest option by specifying the number of observations * to be ommited in the middle of the sample (gqobs = 4); we also split the * dataset evenly (chowone = 15) diagnos / chowtest chowone = 15 gqobs = 4 stop