Do the following analysis with the TAYLOR dataset (available on fmrisc and Sleek4 see below)

BOSTON COLLEGE

Department of Economics

EC 761

Fall 1999

Prof. Baum

PROBLEM SET FOUR

due Wednesday 3 November 1999 at classtime

For the following empirical exercises, hand in both a printout of the results and your evaluation of findings from the results.

Greene problem 14-1 using greene.14-1.dta (see below).

Greene problem 14-3 using grunfeld.dta (see below). You may find the reshape command useful (and possibly maddening).

3. Use the data in grunfeld.dta to fit the Seemingly Unrelated Regression (SURE) model. Compare and contrast the results obtained with SURE to those derived in #2.

Note: The datasets are accessible on both fmrisc.bc.edu, in directory

/res0/resdata/baum/gr2000/

and on Sleek, in directory

Sleek4:[SleekShare]:[Greene2000]

You cannot write in either of those directories; you may save the file, with any changes, to your own directory on either system (i.e. into /u/username on UNIX, or Sleek4:[PersonalStorage]:Yourname-EC on Sleek).