I'm trying to solve a question from the 'Wooldridge - introductory econometrics' book (4th edition).
In question (12,10) we are asked to estimate the static Philips curve model by iterative Prais-Winsten.
My question is: How can I do this is Eviews??
What I tried is:
ls inf c unem (where inf and unem are the variables of interest)
ls uhat c uhat(-1)
this gives me the rhohat, which is 0.572969.
Now I try to do a Prais-Winsten transformation;
and run a OLS on the transformed variables.
when regressing the new residuals on residuals-1 the rho is not what it should be.
I attached the workfile. The prais-winsten rho the book finds is 0.781, I can only find 0.572969
Can anyone help me with this?
Thanks in advance
- phillips imported.wf1
- Dataset needed
- (13.96 KiB) Downloaded 102 times