Does anyone know how to use EVIEWS to regress??

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EViews Introduction

G31.1101-04: Applied Statistics and Econometrics I (Lab), Fall 2004

Matthias Kredler

September 7th, 2004

For a rather quick introduction to EViews, you can also go through the chapter A

Demonstration/Creating a Workfile and Importing Data in the EViews help file. It covers more or less the same topics as this little guide, albeit with a focus on time-series data. If

you want to have more information on a specific topic, go to the respective chapter in the remainder of the EViews help file.

1. Read in data from Excel

(see also the EViews help topic A Demonstration/Creating a Workfile and Importing Data

or EViews Basics/Workfile Basics for a more thorough explanation)· Click on File/New/Workfile... and follow the instructions given the re. If you want to import cross-section data, use the option Undated or irregular in the Frequency

box and specify 1 and the number of observations you have in the Excel file in the box Range. Once you click OK, EViews creates an empty workfile that will be used to accommodate the data from Excel.

·To read the data from Excel into the empty workfile, click Procs/Import/Read

Text-Lotus-Excel.... in the workfile window and follow the instructions. EViews will create one object in the workfile window for each variable in the data set. A remark on the box Data order: In our context, a series consists of the realizations

of one variable (e.g. GDP) across all observations (e.g. countries). If one observation corresponds to one line in your Excel file, you have to choose By observation – series in columns.· After you are done with the work on your dataset, you can save your workfile byclicking Save in the workfile toolbar.· To open an already existing workfile, click File/Open/Workfile… in the EViewsmenu bar when you start the program.

4. Regression

(see also the chapter Basic Regression in the EViews help)

· To specify a regression equation, the workfile containing your dataset has to be active. Click Objects/New Object/Equation and give a list of variables or an explicit formula for your regression. Example: You want to regress the variable weight on a constant and height. You can do this by writing the following list: weight c height (where c stands for the constant) into the box Equation specification. EViews treats the first variable in this list as the dependent and all the

following as independent variables. Alternatively, you can type in the following equation: weight = c(1) + c(2)*height. Here, c(1) and c(2) refer to the respective

coefficients for the constant and for height. The functional form has the advantagethat you can use mathematical expressions, e.g.: weight = c(1) + c(2)*log(height).· As the estimation method, choose LS to get the OLS estimates. After clicking OK,

EViews shows the results of the regression in a new window.

· You can save the regression as an object within the workfile that contains your

variables. Click Name in the window with the regression results and specify a name for the equation object (if you have not done this yet when creating the new

equation object).· For hypothesis testing, residual plots and other more specific topics, check theView and Procs buttons in the window with the regression results.

equation: weight = c(1) + c(2)*height. Here, c(1) and c(2) refer to the respective

coefficients for the constant and for height. The functional form has the advantage that you can use mathematical expressions, e.g.: weight = c(1) + c(2)*log(height).· As the estimation method, choose LS to get the OLS estimates. After clicking OK,

EViews shows the results of the regression in a new window.· You can save the regression as an object within the workfile that contains your

variables. Click Name in the window with the regression results and specify a name

for the equation object (if you have not done this yet when creating the new

equation object).· For hypothesis testing, residual plots and other more specific topics, check the

View and Procs buttons in the window with the regression results.

How To Use Eviews