*
*  Example 7.3
*  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 fringe.raw
data(format=free,org=obs) 1 616 annearn hrearn exper age depends married tenure educ $
 nrtheast nrthcen south male white union office annhrs $
 ind1 ind2 ind3 ind4 ind5 ind6 ind7 ind8 $
 ind9 vacdays sicklve insur pension annbens hrbens annhrssq $
 beratio lannhrs tenuresq expersq lannearn peratio vserat
*
set expersq  = exper**2
set tenuresq = tenure**2
*
*  Define the two equations.
*
equation earneq hrearn
# educ exper expersq tenure tenuresq union south nrtheast nrthcen married white male constant
equation benseq hrbens
# educ exper expersq tenure tenuresq union south nrtheast nrthcen married white male constant
*
*  Estimate them jointly using SUR
*
sur 2
# earneq
# benseq