options crt;
name ramey "GOV24.TSP - Regressions using Govt spending volatility";
smpl 1 888; 
in panel24;
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 ;

?These regressions create the government spending volatility variable
dot 1-24;
 select cntry.=1;
 olsq dlg c lgov1 lgov2 ly1 ly2 d74 t tsq tper; varg = @res**2;
enddot;
smpl 1 888;
sdg = sqrt(varg);
regopt(pvprint) t;

?Table 4 results
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c ly1 ly2 i50 dpop50 ly50 sec t tsq tper d74;
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c ly1 ly2 cntry1-cntry23 t tsq tper d74;
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c ly1 ly2 i50 dpop50 ly50 sec t1-t36;
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c ly1 ly2 t1-t36 cntry1-cntry23 ; 
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c dlg ly1 ly2 t1-t36 cntry1-cntry23 ; 
arch(relax,maxit=80,gt=( varg),mean,hiter=b,hcov=b) 
  dy c g ly1 ly2 t1-t36 cntry1-cntry23 ; 
stop; end;
end;