EVIEWS TUTORIAL BY DR. AHN 1 INSTRUCTION FOR

EVIEWS TUTORIAL BY DR. AHN

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INSTRUCTION FOR ACCESSING AN INSTRUCTOR VOLUME Special Note:

To use the computers located at ASU, you must have an ASURITE ID. You may obtain the ASURITE ID at Computer Commons computing sites (see the support staff for assistance). Once you receive your ASURITE ID and have confirmed that it works, please follow the steps explained below to access my instructor volume. (Note: It would take a day until your ASURITE ID becomes effective.)

Problem Tips:

The computer may already be on. If the last student did not log out and the desktop screen still shows a set of icons, click on the Log Out icon and then click on Log Me Out.

Accessing the Instructor's Volume 1. At the sign on screen enter your ASURITE ID and password. Enter both items in lower

case. Then, click on OK. Wait during the message “Mounting AFS volumes.” Soon the Window desktop will be displayed.

2. Double click on the Applications folder icon on the desktop. 3. Double click on the Instructor Volumes folder icon on the desktop. 4. Find the icon named ECN525 or ECN527 or ECN480, and double click on it. 5. The U: drive instructor volume is now mounted but you cannot see it until the current

window is closed. Close the instructor volume window by clicking on X in the upper right corner of the window.

6. Click on the icon named iv-U: drive. 7. Click on the icon named Eviews. 8. Do whatever you want to do with Eviews. 9 When all jobs are done, click the X button on the top right corner of your screen. Then,

Eviews will ask you whether you want to save all jobs you have done. You can choose Yes or No depending on your preference.


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USING EVIEWS [1] Reading Eviews Data Files (files with wf1 extension) STEP 1: Using your mouse, choose File/Open/workfile.


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STEP 2: Find the driver and the folder where the file you want to read is located. Then, click on the file name. Then, click on Open button.


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[2] Importing Data from Excel For the following exercises, you need to download kmacro.xls and johndoe.xls from my web page for ECN 425 and locate them at your file folder. <Importing kmacro data into Eviews> STEP 1: Open kmacro.xls using Excel. Then, using your mouse, block the data and copy

them.


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STEP 2: Open Eviews. Then, type the following on the Eviews window (the narrow white window below the File, Edit, Objects buttons): create q 1988:1 1997:4 (enter).


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Then, a workfile window will pop up.


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Type the following on the Eviews window: data kcpi kcomr kgovr lkgdp (return)


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Then, a spreadsheet will pop up.


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Locate the cursor on the most north-west cell, and then paste the data.


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STEP 3: Click X (exit button) in the top right corner of the spreadsheet. Then, Eviews will ask you whether you wish to delete untitled GROUP. Click the Yes button.


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Then, you are back to the workfile.


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<Importing johndoe.xls> STEP 1: Open johndoe.xls using Excel. And block the data and copy them.


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STEP 2: In the Eviews window, type: create u 15.


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Push the return button on your keyboard. Then you will see:


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STEP 3: In the Eviews window, type: data x y (enter). Then, you will see:

STEP 4: Do the same things as you have done above.


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[3] Expanding Data STEP 1: In the Eviews window, type: expand. Then, “workfile structure” window will pop

up. Change “10” to “15” in the Observations box. Then, click on the OK button.


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Then, you will see the following window. Click on the Yes button.


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Then, you will be back to the workfile.


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STEP 2: Click on the Show button on the top of the workfile. Then, Show window will pop up. Type “x y” on it and push the OK button.


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Then, you will have a spreadsheet.


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Push the Edit+/- button. Then, revise the values of X for the 11th-15th observations as follows:

X Y 300 NA 400 NA 500 NA 600 NA 700 NA

The purpose of this “expansion” exercise is to let you know how to forecast.


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[4] Saving Data STEP 1: Push File/Save As button.

STEP 2: Find the driver and the folder where you want to save your work file.


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STEP 3: Go to File Names. Type, for example: johndoe.wf1 (return).


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Then, you will have the following window. Push the OK button.


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[5] Transforming Data STEP 1: Push the Genr button on the workfile. STEP 2: Type on the Generate Series by Equation window: lnx = log(x) (return). [Here,

log is the natural log.]

Other Examples: invy = 1/y; xy = x*y; dum = x > 200.

Here dum is a dummy variable which equals 1 if x > 200, and 0 if x ≤ 200.


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To see the variables you created, click on the Show button on the workfile and type “x y lnx xy dum”.


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Then, you will see:


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[6] Choosing a sample range STEP 1: In the work file, push Sample button. STEP 2: In Sample Range Pairs box, type “1 10”.

[Another example: In If Condition box, type “X>200”]


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[7] Obtaining Data Statistics STEP 1: Push Show button. Type "x y". Then, click on OK.


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STEP 2: Click View/Descriptive Stats/Individual Samples.


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Then, you will see:


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X

Y

Mean

170.0000

111.0000

Median

170.0000

112.5000 Maximum

260.0000

155.0000

Minimum

80.00000

65.00000 Std. Dev.

60.55301

31.42893

Skewness

0.000000

-0.037462 Kurtosis

1.775758

1.814310

Jarque-Bera

0.624487

0.588115 Probability

0.731803

0.745234

Observations

10

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Std. Dev . of X = 2

i i( - X)Xn - 1

Σ ; Std. Dev. of Y = 2

i i( - Y)Yn - 1

Σ .

Skewness of X = Estimate of E[(X-µX)3/σX

3]. [If X is normally distributed, Skewness is close to zero.]

Kurtosis of X = Estimate of E[(X-µx)4/σX4].

[If X is normally distributed, kurtosis is close to 2.]

Jarque-Bera statistic = a test statistic for normality of X or Y. [Under the null hypothesis of normality, the statistic is χ2(2)-distributed. Look at the p-value of the J-B statistic for X. If you choose α = 0.05, do not reject Ho.]

STEP 3: If you want to print out the results, push Print button. STEP 4: Click X in the top right corner of the spread sheet. When asked if you want to

delete untitled GROUP, click on Yes.


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[8] Scatter Diagram

On the Group window, choose view/Graph/Scatter/Scatter with Regression.


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Then, you will have:


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Choose OK. Then,


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[9] OLS Regression STEP 1: Push Objects/New Object on the workfile.


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STEP 2: Choose Equation. Then, name the folder in which you wish to store estimation results. You may choose any name (e.g., “jim”). Then, push OK button.

Then, you will have Equation Estimation box.


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STEP 3: In Equation Specification box, type: y c x (enter). [Another example: log(y) c log(x)]


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STEP 4: Click on the Option button. Check on Heteroskedasticity Consistent Coefficient Covariance. Then click on the OK button. You are now back to the Equation Specification window.


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STEP 5: Click on the OK button. Then, you will see:

Dependent Variable: Y Method: Least Squares Sample(adjusted): 1 10 Included observations: 10 after adjusting endpoints White Heteroskedasticity-Consistent Standard Errors & Covariance

Variable Coefficient Std. Error t-Statistic Prob. C 24.45455 7.453797 3.280817 0.0112X 0.509091 0.042212 12.06035 0.0000

R-squared 0.962062 Mean dependent var 111.0000Adjusted R-squared 0.957319 S.D. dependent var 31.42893S.E. of regression 6.493003 Akaike info criterion 6.756184Sum squared resid 337.2727 Schwarz criterion 6.816701Log likelihood -31.78092 F-statistic 202.8679Durbin-Watson stat 2.680127 Prob(F-statistic) 0.000001


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Note: (1) 24.45455 → 0β̂ ; 7.453797 → 0

ˆ( )SE β ; 0.509091 → 1̂β ; 0.042212 → 1̂( )SE β .

(2) 3.28 → t statistic for Ho: β0 = 0.

0.0112 → p-value for testing Ho: β0 = 0 against H1: β0 ≠ 0 .

[If you choose α = 0.05, reject Ho; if α = 0.01, accept Ho.]

(3) 12.06 → t statistic for Ho: β1 = 0.

0.0000 → p-value for testing Ho: β1 = 0 against H1: β1 ≠ 0 .

[If you choose α = 0.05, reject Ho; if α = 0.0001, reject Ho.]

(4) R-Square → R2; Adjusted R-squared → 2R .

(5) S.E. of regression → /( 1)SSR RSS n k= − − ; Sum squared resid → RSS

(6) Adjusted R-Square → 2R ; Mean dependent var → Y .

(7) S.D. dependent var → 2

2 ( )1

i iy

Y Ysn

Σ −=

−.

(8) F-statistic → F for Ho: β1 = 0; Prob(F-statistic) → p-value for the F test.

(9) Durbin-Watson stat → a test for autocorrelation.


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STEP 6: Click view/coefficient tests/Wald-coefficient restrictions.


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If you want to test for Ho: β0 = β1 = 0, type

c(1) = 0, c(2) = 0 .

Click on OK button.


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Then, you will see:


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Wald Test:

Equation: Untitled Test Statistic Value df Probability F-statistic 1530.650 (2, 8) 0.0000 Chi-square 3061.300 2 0.0000

Null Hypothesis Summary:

Normalized Restriction (= 0) Value Std. Err. C(1) 24.45455 7.453797 C(2) 0.509091 0.042212

Restrictions are linear in coefficients. STEP 7: Click the forecast button. Go to S.E. (Optional) and type "yse". Go to Sample

range for forecast. and type "11 15". Click on the OK button.


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Then, you will see:

Click the X button in the top right corner of the graph window to close the graph window.


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STEP 9: Push the show button on the workfile window. In sample range pairs box, type " 11 15" and click on the OK button.


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Click on the Show button on the workfile. Then, in the Show window, type “yf yse”.


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Click on the OK button. Then, you will see:

YF YSE 177.181818182 8.75240608279 228.090909091 11.8676303576

279 15.5149488031 329.909090909 19.3964834549 380.818181818 23.3959494883

STEP 10: Click the X button in the top right corner of the spread sheet. STEP 11: Click on the Save button on the workfile if you wish to save your estimation

results. The results can be recalled by clicking on “jim” on the workfile later.

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EVIEWS TUTORIAL BY DR. AHN 1 INSTRUCTION FOR