*
* Example from section 17.11
* Stock adjustment model
*
cal(q) 1979
open data table17-3.prn
data(format=prn,org=columns) 1979:1 1988:4
*
* Do the transformations. Divide m1 by p to get real balances.
* Take logs of m, r and gdp.
*
set mstar = m1/p
set logm = log(mstar)
set logr = log(r)
set logy = log(gdp)
*
linreg logm
# constant logr logy logm{1}
*
* Show the corresponding long run demand function
*
compute delta=1-%beta(4)
disp %beta(1)/delta "+" %beta(2)/delta "log R +" %beta(3)/delta "log GDP"