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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 | # Replication of "Model 1" from L. Klein, "Economic
# Fluctuations in the United States, 1921-1941",
# New York: John Wiley and Sons, 1950.
open klein.gdt
series W = Wp + Wg
series A = t + (1918 - 1931)
series K1 = K(-1)
# set the model up as a system
"Klein Model 1" <- system
equation C 0 P P(-1) W
equation I 0 P P(-1) K1
equation Wp 0 X X(-1) A
identity P = X - T - Wp
identity W = Wp + Wg
identity X = C + I + G
identity K = K1 + I
endog C I Wp P W X K
end system
# and estimate it in various ways
estimate "Klein Model 1" method=ols
estimate "Klein Model 1" method=tsls
estimate "Klein Model 1" method=3sls
estimate "Klein Model 1" method=fiml --verbose
estimate "Klein Model 1" method=liml
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