Using OLS in EVIEWS :

Scalar : mass/time m3, second, dollars # Vector : m/s, N, kJ,kg Quantity with magnitude : Yes Quantity with direction : No

Lpcocoa = log(pcocoa) Logarithm command

Genr = lpcocoa Generating new variables Dlpcocoa = Lpcocoa Lpcocoa(-1) Difference

Transformed variables Computed

Scalars Computed The computation of an income elasticity will serve as example. Suppose that the parameters of the following dynamic : laggedconsumption equation has been estimated.t = 1 + 2 Yt+ 3 CONSt-1.Page.44/ Book : VogelvangUsing the name CONS instead of C , C is used for a vector with estimation results (constant numbers parameters ?) = 1 + 2Yt + 3.CONSt-1 . = c(1) + c(2).Yt + c(3).CONSt-1

*Calculate the income elasticity ( el_y) 1. The .Sample .Mean of INCOME : EVIEWS command : @mean(Y)2. The .Sample .Mean of Consumption : EVIEWS command : @mean(CONS)3. Compute the Income ElasticityEVIEWS command :( METHOD 1 ) scalar el_y = c(2)*@mean(y)/@mean(CONS)

Scalar name : el_yPrefix : #

( METHOD 2 ) : genr e_y = c(2)*ysa/consaDifference in ( METHOD 2 ) : we can know the Mean; Minimum; Maximum values of the Elasticity .To view : View > Descriptive Stats, Stats Table shows up.