* Reference: Chapters 10, 11, 12 of * Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, * South-Western College Publishing, 2000. SAMPLE 1 49 READ (PHILLIPS.shd) year unem inf unem_1 inf_1 unem_2 inf_2 cunem & cinf cunem_1 cinf_1 SET MISSVALU=-999 SET SKIPMISS * Example 10.1 * Equation (10.14), p. 323. OLS inf unem / RESID=U * Example 11.5 * Equation (11.19), p. 358. * Adjust the sample period to exclude the undefined first observation. SAMPLE 2 49 OLS cinf unem / RESID=UA * Estimate the natural rate of unemployment TEST -CONSTANT/unem * Example 12.1 * Estimate rho SAMPLE 1 49 OLS U U(1.1) / NOCONSTANT SAMPLE 2 49 OLS UA UA(1.1) / NOCONSTANT * The Durbin-Watson test, pp. 382-383. SAMPLE 1 49 * The DWPVALUE option reports the Durbin-Watson test statistic * with the p-value. OLS inf unem / DWPVALUE SAMPLE 2 49 OLS cinf unem / DWPVALUE STOP