*
*  Example 6.5
*  J. Wooldridge, Econometrics of Cross Section and Panel Data
*
*  Note: The sample data files include all required data transformations.
*        However, in many cases we show how these data transformations would
*        be created in RATS from the basic data, as this is something you will
*        need to know how to do in practice.
*
open data injury.raw
data(format=free,org=columns) 1 7150 durat afchnge highearn male married hosp indust injtype $
 age prewage totmed injdes benefit ky mi ldurat $
 afhigh lprewage lage ltotmed head neck upextr trunk $
 lowback lowextr occdis manuf construc highlpre
*
set ldurat = log(durat)
set afchnge_highearn = afchnge*highearn
*
* Run the basic regression, restricting the sample to those where the ky
* dummy is 1.
*
linreg(smpl=ky) ldurat
# constant afchnge highearn afchnge_highearn