options crt;
name ramey "PUB24.TSP: Runs basic regressions for Ramey and Ramey AER";
smpl 1 888; 
in panel24;
minv = minv/100;
i50 = i50/100;
d74 = 0;
tper = 0;
select year>1973; d74 = 1;
trend(period=15) tper;
smpl 1 888;
t = year - 1951;
tsq = t**2;
dummy cntry;
dummy t ;
regopt(pvprint) t;

?First regression
mdy = 0; msdy = 0;
dot 1-24;
  select cntry.=1 ;
  msd dy; mdy = @mean; msdy = @stddev;
enddot;
select year=1962;

?result reported in text
olsq mdy c msdy;

smpl 1 888;
?Table 1;
list gtvars cntry1-cntry16 cntry18-cntry24;
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c minv mpop sec ly50 ;
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c ly50 ;
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c mpop sec ly50 ;

?Table 2
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c i50 dpop50 sec ly50 ly1 ly2 t tsq tper d74;

?Two-step
smpl 1 888;
res = 0;  fit = 0;  sfit = 0;
dot 1-24;
 select cntry.=1;
 olsq dy c ly1 ly2 t tsq tper d74; res = @res;
 fit = @fit;
 msd res fit; sdy = @stddev(1); sfit = @stddev(2);
enddot;
smpl 1 888;
olsq(robustse) dy c sdy i50 dpop50 sec ly50 ly1 ly2 t tsq tper d74;
olsq(robustse) dy c sdy sfit i50 dpop50 sec ly50 ly1 ly2 t tsq tper d74;

?Table 3
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c minv dpop50 sec ly50 ly1 ly2 t tsq tper d74;
? Use HITER=N in TSP 4.4 and higher to obtain complete convergence,
? by starting from the above estimates.  The results are nearly identical.
copy @coef @start;
arch(relax,maxit=80,gt=gtvars,mean,hiter=n,hcov=bw)
  dy c minv dpop50 sec ly50 ly1 ly2 t tsq tper d74;
delete @start;
sdyb = sqrt(@ht);
arch(relax,maxit=80,gt=gtvars,mean,hiter=b,hcov=b)
  dy c dpop50 sec ly50 ly1 ly2 t tsq tper d74;

select year=1962;
olsq minv c sdyb;
olsq minv c sdyb dpop50 sec ly50;

stop; end;
end;