name ramey "92 Country Basic Results: PUB92.TSP";
smpl 1 2208;
regopt(pvprint) t;
in panel92;
minv = minv/100;
initi = initi/100;
dummy cntry;
d74 = 0;
tper = 0;
select year>1973; d74 = 1;
trend(period=12) tper;
smpl 1 2208;
t = year - 1961;
tsq = t**2;
dot 1-92;
 select cntry.=1;
 msd(noprint) dy; mdy = @mean; sdy = @stddev;
enddot;

?First regression
select year=1962;
olsq mdy c sdy;

?Table 1 and text
smpl 1 2208;
arch(relax,maxit=80,mean,gt=(cntry1-cntry83 cntry85-cntry92),hiter=b,hcov=b)
 dy c minv mdpop inith ly60 ;
arch(relax,maxit=80,mean,gt=(cntry1-cntry67 cntry69-cntry92),hiter=b,hcov=b)
 dy c mdpop inith ly60 ;

?Table 2
arch(relax,maxit=80,mean,gt=(cntry1-cntry72 cntry74-cntry92),hiter=b,hcov=b)
 dy c initi initdp ly60 inith ly1 ly2 t d74 tper tsq;

?Two-step
dot 1-92; select cntry.=1;
 olsq(silent) dy c ly1 ly2 t tsq tper d74; res = @res;
 fit = @fit;
 msd res fit; sdy = @stddev(1); sfit = @stddev(2);
enddot;
smpl 1 2208;
olsq(robustse) dy c sdy sfit initi initdp ly60 inith ly1 ly2 t tsq tper d74;

?Table 3
arch(relax,maxit=80,mean,gt=(cntry1-cntry72 cntry74-cntry92),hiter=b,hcov=b)
 dy c minv initdp ly60 inith ly1 ly2 t d74 tper tsq;

? 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=(cntry1-cntry72 cntry74-cntry92),mean,hiter=n,hcov=bw)
 dy c minv initdp ly60 inith ly1 ly2 t d74 tper tsq;
delete @start;
sdyb = sqrt(@ht);


arch(relax,maxit=80,gt=(cntry1-cntry72 cntry74-cntry92),mean,hiter=b,hcov=b)
 dy c initdp ly60 inith ly1 ly2 t d74 tper tsq;


select year=1962;
olsq minv c sdyb;
olsq minv c sdyb initdp ly60 inith;

stop; end;
end;