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# PS10.10 for Example 10.8 
open data10-1
# subtract the mean from each observation
genr R = r - mean(r)
genr m = M - mean(M)
# generate quarterly lags
lags R m
genr R_5 = R(-5)
genr R_6 = R(-6)
genr m_5 = m(-5)
genr m_6 = m(-6)
list
# supress the first six observations
smpl 1965.3 1991.2
# estimate the model for interest Rate 
ols R R_1 R_2 R_3 R_4 R_5 R_6 m_1 m_2 m_3 m_4 m_5 m_6
# omit the money supply variables - note the Wald F value at the end 
omit m_1 m_2 m_3 m_4 m_5 m_6
# estimate the model for money supply 
ols m m_1 m_2 m_3 m_4 m_5 m_6 R_1 R_2 R_3 R_4 R_5 R_6
# omit the interest Rate variables - Wald F value is at the end 
omit R_1 R_2 R_3 R_4 R_5 R_6