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By Charles Askins

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000 O. 629 -I ,040778 -12. 78354_6 -2. 1312414 5. 273067 ...... Endogenous Exogenous variables: variables: quantity price pcompete income praw i i However. in this case. rag3 'has been forced to create a unique equation name lbr the supply equation--2quantity Both the supply and d_mand equations could not be designated as quant ±ty. so a number was prefixed to the name for th_ supply equation. equation specifications. i In the absence of explicit equation names, _ega always assumes that the dependent variable should be Used to name equations.

It contains several common features which will serve to demonstrate the full syntax of reg3. The Klein model is defined by the following seven relationships. _ u= ulmulcaneous equazlons c = 3o _-_Ip +/_2pl +/_3w+ el (I) i = _4+ _sp+ _6pi_/_7kI + c2 (2) wp = _S + _9Y -_ _loyl + _11yr + 63 The variables first name in the model uses traditional I (3) y=e+i+g (4) p=_-t-_p (_) k "-=kl + i (6) w-- wg+ wp (7) are listed economics for everyone else, The concise understandable to economists). uo names below.

When the dfk option is set, a small-sample adjustment is made and the divisor is taken to be v/(rt - k_)(n -j), equations i and j respectively. where ki and kj are the numbers of parameters in dfk2 specifies the use of an alternate divisor in computing the covariance matrix for the equation errors. When the dfk2 option is set, the _ivisor is taken to be the mean of the residual degrees of freedom from the indh'idual equations. small specifies that small sample statistics are to be computed. It shifts the test statistics from k2 and Z statistics to F statistics and t statistics.

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