new ,80000; #include m:\thorsten\dpd96\dpd96.fns;
@--------------------------- SPECIFY GAUSS OPTIONS ---------------------------@

@ Set ver=1 when using GAUSS386 @       ver=1;
@ Set sys=1 to exit to DOS @            sys=0;
@ Set bat=1 to use in batch mode @      bat=1;

@ Set pseud=1 to use pseudo-inverses @  pseud=1;
@ in computing two-step results      @

@------------------------- SET UP FOR BATCH OPERATION ------------------------@

@ The following set up will only be used when bat is set to 1 @

@ Form of model @                       imod=3;
@ Choice of constants @                 icon=1;
@ Robust covariance & two-step option @ irob=1;
@ Descriptive statistics @              ides=1;
@ Print covariance matrices @           icov=0;
@ Save results to GAUSS matrices @      isav=0;

@------------------------------ SPECIFY DATA SET -----------------------------@

@PREPARE DATA SET TO BE USED BY DPD@

infile="m:\\thorsten\\dpd96\\data";
outfile="m:\\thorsten\\dpd96\\dpdfin";
auxfile="m:\\thorsten\\dpd96\\auxfin";
minobs=3;

let varlist = growth prod1 linitial gov lly
              trade capgrols lpi school lbmp
              privo btot
             ;

let codevar=code;



let yearvar=year;




{numobs,numunits,numyears,inityear}=makedpd(infile,outfile,auxfile,
codevar,yearvar,varlist,minobs);






@ SPECIFY GAUSS DATA SET @
@ Specify main GAUSS data set @         open f1=^outfile;
@ Specify auxiliary data set @          open f2=^auxfile;

@ Start reading at line (f1) @          startf1=1;
@ Stop reading at line (f1) @           stopf1=rowsf(f1);


@ Start reading at line (f2) @          startf2=1;
@ Stop reading at line (f2) @           stopf2=rowsf(f2);

@------------------------------ DATA INFORMATION -----------------------------@

@ Number of companies to @
@ process in each read @                ncomp=100;

@ Data column for year @                yearcol=rows(varlist)+2;
@ First year of data @                  year1=inityear;
@ Number of years in data set @         nyears=numyears;

@ Data column for industry @            indcol=1;
@ Number of industry classes @          indmax=9;

@ Longest lag to be constructed @       lag=1;


@------------ DATA TRANSFORMATIONS AND MODEL SELECTION SUBROUTINE ------------@
goto below;
model:

@ The main data set is read in to a matrix called data @
@ Operations using columns of data may be performed here @

@ Function back(c,l) returns the l'th lag of the series in column c of data @

@ Function timdum(y1~y2~...~yn) returns the 0/1 dummy with value 1 for @
@ years y1 or y2 or ... or yn and 0 otherwise. Format for years is 19xx. @

@ Function inddum(i1~i2~...~in) returns the 0/1 dummy with value 1 for @
@ industries i1 or i2 or ... or in, and 0 otherwise. @

@ Variable names temp* are reserved for storing intermediate transformations @

data[.,4]=ln(data[.,4]*100);
data[.,5]=ln(data[.,5]*100);
data[.,6]=ln(data[.,6]*100);
data[.,11]=ln(data[.,11]*100);
data[.,12]=ln(data[.,12]*100);
data[.,1]=data[.,1]*100;
data[.,2]=data[.,2]*100;
data[.,7]=data[.,7]*100;
data[.,9]=ln(1+data[.,9]);


@ SELECT DEPENDENT VARIABLE @

y=diflev(1,0);
namey="growth";

@ SELECT REGRESSORS @

x=diflev(3,0)~diflev(9,0)~diflev(11,0)
~diflev(4,0)~diflev(6,0)~diflev(8,0)~diflev(10,0)
;

namex="initial"~"school"~
"privo"~"gov"~"trade"~"pi"~"bmp"
;

@ SELECT INSTRUMENTS @

zd=gmm(3,1,1)~gmm(9,1,1)~
gmm(11,2,2)~gmm(4,2,2)~gmm(6,2,2)
~gmm(8,2,2)~gmm(10,2,2);



zl=gmmlevd(3,0)~gmmlevd(9,0)~
gmmlevd(11,1)~gmmlevd(4,1)~gmmlevd(6,1)
~gmmlevd(8,1)~gmmlevd(10,1);



z=combine(zd,zl);

namez="onelag"
;

@~"english"~"french"~"scand";@

return;
below:
@---------------- USER-DEFINED WALD TEST OF JOINT SIGNIFICANCE ---------------@

@ Set waldtest=1 for this option @      waldtest=0;
@ Select columns of x to be tested @    testcols=2;

@-------------------------- SPECIFY FILE FOR OUTPUT --------------------------@

output file=m:\thorsten\dpd96\inv.out reset;

@ Note that "on" will append and "reset" will overwrite @

@*****************************************************************************@
@                                                                             @
@              AFTER SELECTING THE MODEL THIS PROGRAM CAN BE                  @
@              RUN DIRECTLY FROM THE GAUSS EDITOR BY HITTING F2               @
@                                                                             @
@*****************************************************************************@

#include m:\thorsten\dpd96\dpd96m.prg; end;
@------------------------------- END OF PROGRAM ------------------------------@