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Stata Textbook Examples
Econometric Analysis of Cross Section and Panel Data by Jeffrey M. Wooldridge
Chapter 6: Additional Single-equation Topics

The data files used for the examples in this text can be downloaded in a zip file from the Stata Web site. You can then use a program such as WinZip to unzip the data files.

Example 6.1 on page 120 using mroz.dta.
use mroz, clear

reg educ exper expersq motheduc fatheduc huseduc if lwage ~=.

      Source |       SS       df       MS              Number of obs =     428
-------------+------------------------------           F(  5,   422) =   63.30
       Model |  955.830608     5  191.166122           Prob > F      =  0.0000
    Residual |  1274.36565   422  3.01982382           R-squared     =  0.4286
-------------+------------------------------           Adj R-squared =  0.4218
       Total |  2230.19626   427  5.22294206           Root MSE      =  1.7378

------------------------------------------------------------------------------
        educ |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |   .0374977   .0343102     1.09   0.275    -.0299424    .1049379
     expersq |  -.0006002   .0010261    -0.58   0.559    -.0026171    .0014167
    motheduc |   .1141532   .0307835     3.71   0.000     .0536452    .1746613
    fatheduc |   .1060801   .0295153     3.59   0.000     .0480648    .1640955
     huseduc |   .3752548   .0296347    12.66   0.000     .3170049    .4335048
       _cons |   5.538311   .4597824    12.05   0.000     4.634562     6.44206
------------------------------------------------------------------------------

predict resids, res
reg lwage exper expersq educ resids

      Source |       SS       df       MS              Number of obs =     428
-------------+------------------------------           F(  4,   423) =   20.48
       Model |  36.2304984     4  9.05762461           Prob > F      =  0.0000
    Residual |  187.096942   423  .442309557           R-squared     =  0.1622
-------------+------------------------------           Adj R-squared =  0.1543
       Total |  223.327441   427  .523015084           Root MSE      =  .66506

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |   .0430973    .013181     3.27   0.001      .017189    .0690057
     expersq |  -.0008628   .0003937    -2.19   0.029    -.0016366    -.000089
        educ |   .0803918   .0216362     3.72   0.000     .0378638    .1229197
      resids |    .047189   .0285519     1.65   0.099    -.0089322    .1033102
       _cons |  -.1868572   .2835905    -0.66   0.510    -.7442792    .3705648
------------------------------------------------------------------------------
Example 6.2 on page 121 using card.dta.
use card, clear
gen black_educ=black*educ
reg lwage educ black_educ black exper expersq smsa smsa66 south reg661 reg662 reg663 reg664 reg665 ///
	reg666 reg667 reg668
	
      Source |       SS       df       MS              Number of obs =    3010
-------------+------------------------------           F( 16,  2993) =   80.83
       Model |  178.817032    16  11.1760645           Prob > F      =  0.0000
    Residual |  413.824613  2993  .138264154           R-squared     =  0.3017
-------------+------------------------------           Adj R-squared =  0.2980
       Total |  592.641645  3009  .196956346           Root MSE      =  .37184

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
        educ |   .0707788   .0037548    18.85   0.000     .0634165    .0781411
  black_educ |   .0178595    .006271     2.85   0.004     .0055636    .0301554
       black |  -.4191076   .0794021    -5.28   0.000    -.5747958   -.2634194
       exper |   .0821556   .0066828    12.29   0.000     .0690522    .0952589
     expersq |  -.0021349   .0003207    -6.66   0.000    -.0027638    -.001506
        smsa |   .1340694   .0200931     6.67   0.000     .0946718    .1734671
      smsa66 |   .0249824   .0194297     1.29   0.199    -.0131144    .0630793
       south |  -.1441927   .0259827    -5.55   0.000    -.1951384    -.093247
      reg661 |  -.1221746   .0388047    -3.15   0.002    -.1982611    -.046088
      reg662 |  -.0232881   .0282266    -0.83   0.409    -.0786336    .0320574
      reg663 |   .0230953   .0273506     0.84   0.399    -.0305325    .0767231
      reg664 |  -.0666851   .0356556    -1.87   0.062    -.1365971    .0032268
      reg665 |   .0032644     .03614     0.09   0.928    -.0675974    .0741261
      reg666 |   .0151248   .0401224     0.38   0.706    -.0635455    .0937951
      reg667 |  -.0074966   .0394073    -0.19   0.849    -.0847648    .0697716
      reg668 |  -.1757195   .0462851    -3.80   0.000    -.2664733   -.0849657
       _cons |   4.806769   .0752604    63.87   0.000     4.659202    4.954337
------------------------------------------------------------------------------

gen black_nearc4 = black*nearc4
reg educ exper expersq black smsa smsa66 south reg661 reg662 reg663 reg664 reg665 reg666 reg667 ///
      reg668 nearc4 black_nearc4
	
      Source |       SS       df       MS              Number of obs =    3010
-------------+------------------------------           F( 16,  2993) =  170.69
       Model |   10287.619    16  642.976186           Prob > F      =  0.0000
    Residual |  11274.4611  2993  3.76694323           R-squared     =  0.4771
-------------+------------------------------           Adj R-squared =  0.4743
       Total |  21562.0801  3009  7.16586243           Root MSE      =  1.9409

------------------------------------------------------------------------------
        educ |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |  -.4125542    .033728   -12.23   0.000    -.4786866   -.3464218
     expersq |   .0008699   .0016525     0.53   0.599    -.0023703    .0041101
       black |  -.9374537    .147931    -6.34   0.000     -1.22751   -.6473969
        smsa |   .4021227    .104889     3.83   0.000     .1964609    .6077845
      smsa66 |   .0254418   .1058119     0.24   0.810    -.1820295    .2329132
       south |  -.0517208   .1356037    -0.38   0.703    -.3176067    .2141651
      reg661 |  -.2102379   .2025002    -1.04   0.299    -.6072915    .1868158
      reg662 |  -.2888672   .1473834    -1.96   0.050    -.5778502    .0001158
      reg663 |  -.2382962   .1427517    -1.67   0.095    -.5181975    .0416051
      reg664 |  -.0932447   .1862439    -0.50   0.617    -.4584237    .2719343
      reg665 |  -.4828321   .1882474    -2.56   0.010    -.8519394   -.1137248
      reg666 |  -.5129027   .2099523    -2.44   0.015     -.924568   -.1012373
      reg667 |   -.427108   .2056584    -2.08   0.038    -.8303541    -.023862
      reg668 |   .3135707   .2417323     1.30   0.195    -.1604075     .787549
      nearc4 |   .3191761   .0978211     3.26   0.001     .1273727    .5109796
black_nearc4 |   .0029741   .1767953     0.02   0.987    -.3436786    .3496267
       _cons |    16.8492   .2149486    78.39   0.000     16.42774    17.27066
------------------------------------------------------------------------------

predict er, res
reg black_educ exper expersq black smsa smsa66 south reg661 reg662 reg663 reg664 reg665 reg666 reg667 ///
	reg668 nearc4 black_nearc4
	
      Source |       SS       df       MS              Number of obs =    3010
-------------+------------------------------           F( 16,  2993) = 3680.14
       Model |  77916.1435    16  4869.75897           Prob > F      =  0.0000
    Residual |   3960.4957  2993  1.32325282           R-squared     =  0.9516
-------------+------------------------------           Adj R-squared =  0.9514
       Total |  81876.6392  3009  27.2105813           Root MSE      =  1.1503

------------------------------------------------------------------------------
  black_educ |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |   .0533248   .0199902     2.67   0.008     .0141289    .0925207
     expersq |   -.007937   .0009794    -8.10   0.000    -.0098574   -.0060166
       black |    11.5499   .0876771   131.73   0.000     11.37799    11.72182
        smsa |   .1952868   .0621665     3.14   0.002     .0733934    .3171803
      smsa66 |   .0469365   .0627135     0.75   0.454    -.0760295    .1699024
       south |   -.252799   .0803708    -3.15   0.002    -.4103867   -.0952114
      reg661 |    .162124   .1200196     1.35   0.177    -.0732053    .3974534
      reg662 |   .0056958   .0873525     0.07   0.948    -.1655812    .1769729
      reg663 |   .0860648   .0846073     1.02   0.309    -.0798296    .2519592
      reg664 |    .113297   .1103847     1.03   0.305    -.1031406    .3297345
      reg665 |   .2615297   .1115721     2.34   0.019     .0427639    .4802955
      reg666 |   .3347247   .1244364     2.69   0.007     .0907352    .5787143
      reg667 |   .2962538   .1218915     2.43   0.015     .0572543    .5352533
      reg668 |   .0995837   .1432721     0.70   0.487     -.181338    .3805054
      nearc4 |  -.0908895   .0579775    -1.57   0.117    -.2045693    .0227903
black_nearc4 |    .874705   .1047846     8.35   0.000     .6692478    1.080162
       _cons |   .0948535   .1273977     0.74   0.457    -.1549425    .3446494
------------------------------------------------------------------------------

predict br, res
reg lwage educ black_educ black exper expersq smsa smsa66 south reg661 reg662 reg663 reg664 reg665 ///
	reg666 reg667 reg668 er br
	
      Source |       SS       df       MS              Number of obs =    3010
-------------+------------------------------           F( 18,  2991) =   71.89
       Model |  178.967086    18  9.94261591           Prob > F      =  0.0000
    Residual |  413.674558  2991  .138306439           R-squared     =  0.3020
-------------+------------------------------           Adj R-squared =  0.2978
       Total |  592.641645  3009  .196956346           Root MSE      =   .3719

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
        educ |   .1273557   .0547317     2.33   0.020     .0200401    .2346713
  black_educ |   .0109036   .0387795     0.28   0.779    -.0651337    .0869408
       black |   -.282765   .4866264    -0.58   0.561    -1.236921    .6713913
       exper |   .1059116   .0241963     4.38   0.000     .0584685    .1533547
     expersq |  -.0022406   .0004635    -4.83   0.000    -.0031493   -.0013318
        smsa |   .1111555   .0304028     3.66   0.000      .051543     .170768
      smsa66 |   .0180009   .0207769     0.87   0.386    -.0227374    .0587393
       south |  -.1424762   .0272675    -5.23   0.000    -.1959412   -.0890112
      reg661 |  -.1103479   .0410557    -2.69   0.007    -.1908481   -.0298477
      reg662 |  -.0081783   .0317789    -0.26   0.797     -.070489    .0541325
      reg663 |   .0382414   .0314436     1.22   0.224    -.0234119    .0998946
      reg664 |  -.0600379   .0368007    -1.63   0.103    -.1321951    .0121193
      reg665 |   .0337805   .0479745     0.70   0.481     -.060286    .1278469
      reg666 |   .0498975   .0537534     0.93   0.353    -.0554998    .1552948
      reg667 |   .0216942   .0501526     0.43   0.665    -.0766428    .1200312
      reg668 |  -.1908353   .0485659    -3.93   0.000    -.2860613   -.0956093
          er |  -.0568274   .0548612    -1.04   0.300     -.164397    .0507422
          br |   .0070106   .0392971     0.18   0.858    -.0700415    .0840627
       _cons |    3.84499   .9314527     4.13   0.000     2.018637    5.671342
------------------------------------------------------------------------------

test er br

 ( 1)  er = 0
 ( 2)  br = 0

       F(  2,  2991) =    0.54
            Prob > F =    0.5814

ivreg lwage (educ black_educ = nearc4 black_nearc4 ) black exper expersq smsa smsa66 south reg661 ///
	reg662 reg663 reg664 reg665 reg666 reg667 reg668
	
Instrumental variables (2SLS) regression

      Source |       SS       df       MS              Number of obs =    3010
-------------+------------------------------           F( 16,  2993) =   48.15
       Model |  144.325528    16  9.02034548           Prob > F      =  0.0000
    Residual |  448.316117  2993  .149788212           R-squared     =  0.2435
-------------+------------------------------           Adj R-squared =  0.2395
       Total |  592.641645  3009  .196956346           Root MSE      =  .38702

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
        educ |   .1273557   .0569582     2.24   0.025     .0156744    .2390369
  black_educ |   .0109036   .0403571     0.27   0.787    -.0682269    .0900341
       black |   -.282765   .5064228    -0.56   0.577    -1.275737     .710207
       exper |   .1059116   .0251806     4.21   0.000     .0565385    .1552847
     expersq |  -.0022406   .0004823    -4.65   0.000    -.0031863   -.0012949
        smsa |   .1111555   .0316396     3.51   0.000      .049118    .1731931
      smsa66 |   .0180009   .0216221     0.83   0.405    -.0243947    .0603966
       south |  -.1424762   .0283768    -5.02   0.000    -.1981162   -.0868362
      reg661 |  -.1103479   .0427259    -2.58   0.010    -.1941229   -.0265729
      reg662 |  -.0081783   .0330717    -0.25   0.805    -.0730239    .0566673
      reg663 |   .0382413   .0327227     1.17   0.243      -.02592    .1024027
      reg664 |  -.0600379   .0382978    -1.57   0.117    -.1351305    .0150547
      reg665 |   .0337805   .0499262     0.68   0.499    -.0641126    .1316736
      reg666 |   .0498975   .0559401     0.89   0.372    -.0597874    .1595825
      reg667 |   .0216942   .0521928     0.42   0.678    -.0806432    .1240317
      reg668 |  -.1908353   .0505417    -3.78   0.000    -.2899352   -.0917354
       _cons |    3.84499   .9693451     3.97   0.000      1.94434     5.74564
------------------------------------------------------------------------------
Instrumented:  educ black_educ
Instruments:   black exper expersq smsa smsa66 south reg661 reg662 reg663
               reg664 reg665 reg666 reg667 reg668 nearc4 black_nearc4
------------------------------------------------------------------------------
Example 6.3 on page 123 using mroz.dta.
use mroz, clear

ivreg2 lwage  exper expersq  (educ= motheduc fatheduc huseduc) 

Instrumental variables (2SLS) regression
----------------------------------------

                                                      Number of obs =      428
                                                      F(  3,   424) =    11.52
                                                      Prob > F      =   0.0000
Total (centered) SS     =  223.3274409                Centered R2   =   0.1495
Total (uncentered) SS   =  829.5947861                Uncentered R2 =   0.7711
Residual SS             =  189.9347041                Root MSE      =      .67

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
        educ |   .0803918    .021672     3.71   0.000     .0379155    .1228681
       exper |   .0430973   .0132027     3.26   0.001     .0172204    .0689742
     expersq |  -.0008628   .0003943    -2.19   0.029    -.0016357   -.0000899
       _cons |  -.1868572   .2840591    -0.66   0.511    -.7436029    .3698885
------------------------------------------------------------------------------
Sargan statistic (overidentification test of all instruments):           1.115
                                                   Chi-sq(2) P-val =   0.57263
------------------------------------------------------------------------------
Instrumented:  educ
Instruments:   motheduc fatheduc huseduc exper expersq
------------------------------------------------------------------------------

ivreg2 lwage  exper expersq  (educ= motheduc fatheduc huseduc) , robust

IV (2SLS) regression with robust standard errors
------------------------------------------------

                                                      Number of obs =      428
                                                      F(  3,   424) =     9.19
                                                      Prob > F      =   0.0000
Total (centered) SS     =  223.3274409                Centered R2   =   0.1495
Total (uncentered) SS   =  829.5947861                Uncentered R2 =   0.7711
Residual SS             =  189.9347041                Root MSE      =      .67

------------------------------------------------------------------------------
             |               Robust
       lwage |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
        educ |   .0803918   .0216016     3.72   0.000     .0380533    .1227302
       exper |   .0430973   .0152347     2.83   0.005     .0132378    .0729568
     expersq |  -.0008628   .0004197    -2.06   0.040    -.0016854   -.0000402
       _cons |  -.1868572   .2998514    -0.62   0.533    -.7745552    .4008408
------------------------------------------------------------------------------
Hansen J statistic (overidentification test of all instruments):         1.042
                                                   Chi-sq(2) P-val =   0.59389
------------------------------------------------------------------------------
Instrumented:  educ
Instruments:   motheduc fatheduc huseduc exper expersq
------------------------------------------------------------------------------
Example 6.4 on page 125 using nls80.dta.
use nls80, clear

reg lwage exper tenure married south urban black educ

      Source |       SS       df       MS              Number of obs =     935
-------------+------------------------------           F(  7,   927) =   44.75
       Model |  41.8377619     7  5.97682312           Prob > F      =  0.0000
    Residual |  123.818521   927  .133569063           R-squared     =  0.2526
-------------+------------------------------           Adj R-squared =  0.2469
       Total |  165.656283   934  .177362188           Root MSE      =  .36547

------------------------------------------------------------------------------
       lwage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |    .014043   .0031852     4.41   0.000      .007792     .020294
      tenure |   .0117473    .002453     4.79   0.000     .0069333    .0165613
     married |   .1994171   .0390502     5.11   0.000     .1227801     .276054
       south |  -.0909036   .0262485    -3.46   0.001     -.142417   -.0393903
       urban |   .1839121   .0269583     6.82   0.000     .1310056    .2368185
       black |  -.1883499   .0376666    -5.00   0.000    -.2622717   -.1144281
        educ |   .0654307   .0062504    10.47   0.000     .0531642    .0776973
       _cons |   5.395497    .113225    47.65   0.000      5.17329    5.617704
------------------------------------------------------------------------------

predict resid, res
predict yhat
(option xb assumed; fitted values)

gen y2=yhat^2
gen y3=yhat^3
gen y4=yhat^4
reg resid exper tenure married south urban black educ y2 y3

      Source |       SS       df       MS              Number of obs =     935
-------------+------------------------------           F(  9,   925) =    0.04
       Model |  .043635869     9   .00484843           Prob > F      =  1.0000
    Residual |  123.774885   925  .133810687           R-squared     =  0.0004
-------------+------------------------------           Adj R-squared = -0.0094
       Total |  123.818521   934   .13256801           Root MSE      =   .3658

------------------------------------------------------------------------------
       resid |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
       exper |  -.7632267   1.397385    -0.55   0.585     -3.50564    1.979186
      tenure |  -.6384821   1.169016    -0.55   0.585    -2.932712    1.655748
     married |  -10.83869    19.8426    -0.55   0.585    -49.78042    28.10305
       south |   4.941136   9.046332     0.55   0.585    -12.81258    22.69485
       urban |  -9.997095   18.30255    -0.55   0.585    -45.91644    25.92225
       black |   10.23873   18.74209     0.55   0.585    -26.54323    47.02068
        educ |  -3.555951   6.510939    -0.55   0.585    -16.33388    9.221973
          y2 |   8.092523   14.74836     0.55   0.583    -20.85161    37.03666
          y3 |  -.4012701   .7281559    -0.55   0.582    -1.830299    1.027759
       _cons |  -171.6899   313.2923    -0.55   0.584    -786.5359    443.1561
------------------------------------------------------------------------------

di 935*.0004
.374

di chi2tail(2, .374)
.82944374
Example 6.5 on page 131 using injury.dta.
use injury, clear

gen afchnge_highearn = afchnge*highearn
reg ldurat afchnge highearn afchnge_highearn if ky==1

      Source |       SS       df       MS              Number of obs =    5626
-------------+------------------------------           F(  3,  5622) =   39.54
       Model |  191.071442     3  63.6904807           Prob > F      =  0.0000
    Residual |   9055.9345  5622  1.61080301           R-squared     =  0.0207
-------------+------------------------------           Adj R-squared =  0.0201
       Total |  9247.00594  5625  1.64391217           Root MSE      =  1.2692

------------------------------------------------------------------------------
      ldurat |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
     afchnge |   .0076573   .0447173     0.17   0.864    -.0800058    .0953204
    highearn |   .2564785   .0474464     5.41   0.000     .1634652    .3494918
afchnge_hi~n |   .1906012   .0685089     2.78   0.005     .0562973    .3249051
       _cons |   1.125615   .0307368    36.62   0.000     1.065359    1.185871
------------------------------------------------------------------------------

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