For example, in order to estimate a model such as the
Klein1 model using the OLS algorithm, the simple command
ESTIMATE ( klein1 )
is used. If the Generalized Least Squares algorithm
is desired, then the command would be
ESTIMATE ( klein1 : gls )
which selects the GLS algorithm. If only the
consumption equation is to be selected for OLS estimation, then the command
ESTIMATE ( klein1, consumption )
would be used.
Other options to the ESTIMATE command control the
statistical tests that are done.