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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 | # PS7.6, for the Application in Section 7.6
open data7-4
# generate interactions between D90 and the explanatory variables
genr D90YF = D90*YF
genr D90YM=D90*YM
genr D90EDUC=D90*EDUC
genr D90UE=D90*UE
genr D90MR=D90*MR
genr D90DR=D90*DR
genr D90URB=D90*URB
genr D90WH=D90*WH
varlist
# Estimate the most general model
ols WLFP const D90 YF D90YF YM D90YM EDUC D90EDUC UE D90UE MR D90MR \
DR D90DR URB D90URB WH D90WH
# omit variables one at a time
omit YM
omit D90EDUC
omit D90
omit D90YM
omit D90WH
omit D90URB
# final model
omit D90DR
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