* Estimation of Klein's Model I * ============================= * * The 3 structural equations are: * (1) consumption ; (2) investment and (3) demand for labor * The model is described in: * Theil, Principles of Econometrics, 1971, pp.432-434; and * Greene, Econometric Analysis, * Second Edition, 1993, p. 581 and p. 615 ; * Fourth Edition, 2000, p. 655 and p. 699. * * WG GOVERNMENT WAGE BILL * T INDIRECT TAXES * G GOVERNMENT EXPENDITURES * TIME TIME TREND * PLAG PROFITS LAGGED ONE PERIOD * KLAG STOCK OF CAPITAL AT END OF PREVIOUS PERIOD * XLAG PRIVATE PRODUCT LAGGED ONE PERIOD * C CONSUMPTION * I INVESTMENT * WP PRIVATE WAGE BILL * P PROFITS * WGWP WAGES * X PRIVATE PRODUCT SAMPLE 1 21 READ (klein.txt) WG T G TIME PLAG KLAG XLAG C I WP P WGWP X * 2SLS 2SLS C PLAG P WGWP (WG T G TIME PLAG KLAG XLAG) / DN RSTAT * Systems of equations - 3SLS SYSTEM 3 WG T G TIME PLAG KLAG XLAG / DN OLS C PLAG P WGWP OLS I PLAG KLAG P OLS WP TIME XLAG X TEST P:1=P:2 STOP