Basic Example of TSP

Here is a simple example of how TSP works. It shows the basic regression procedure OLSQ (Ordinary Least Squares). For more complex examples, please see our TSP examples library.

 
 FREQ A;          ? Set the data frequency to annual.
 SMPL 61 75 ;     ? Specify the range of data as 1961-1975.
 READ(file='illus.dat') GNP CONS I ; ? Read in GNP, consumption, investment
 REGOPT(LMLAGS=2) LMAR;  ? Turn on the LMAR diagnostics.
 OLSQ CONS C GNP;      ? Regress CONS on GNP and a constant.
 
 

This example produces the following output in TSP 4.5:

                                      Equation   1
                                      ============
 
                 Method of estimation = Ordinary Least Squares
 
 Dependent variable: CONS
 Current sample:  1961 to 1975
 Number of observations:  15
 
          Mean of dep. var. = 626.527
     Std. dev. of dep. var. = 105.195
   Sum of squared residuals = 1911.53
      Variance of residuals = 147.040
   Std. error of regression = 12.1260
                  R-squared = .987662
         Adjusted R-squared = .986712
               LM het. test = .513322 [.474]
              Durbin-Watson = .616923 [.000,.002]
 Breusch/Godfrey LM: AR/MA1 = 9.22897 [.002]
 Breusch/Godfrey LM: AR/MA2 = 8.69666 [.013]
           Jarque-Bera test = .659462 [.719]
            Ramsey's RESET2 = 6.96993 [.022]
            F (zero slopes) = 1040.62 [.000]
             Schwarz B.I.C. = 60.3492
             Log likelihood = -57.6411
 
            Estimated   Standard
 Variable  Coefficient    Error     t-statistic   P-value
 C         -63.3408     21.6135     -2.93061      [.012]
 GNP       .676823      .020981     32.2586       [.000]
 
 

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