Introduction to Eviews Eviews Workshop September 6, :30 p.m.-3:30 p.m.

Workshop Outline Opening Eviews How Eviews manages data Importing data Summary statistics Creating and changing a series Running Regressions Performing basic tests Working with commands Saving your workfiles and textfiles

Eviews Access To access Eviews use an EconLab computer or a remote desktop connection. To connect remotely, go to start, remote desktop connection, type “sas.coloradocollege.edu” into the computer field and connect using your CC username and password.

EViews Workfile The workfile is the central place to keep and save all your work Your workfile saves your groups (data), tables, equations, variables, and graphs in one convenient location. Constant in the model Equation Graph Group Series

Using Workfiles To create a new workfile -File  New  Workfile Data Structure ▫Time Series  Dated/Regular  frequency +Data Range ▫Cross Sectional  Undated/unstructured  # of observations ▫Panel  balanced panel Save & Name New Pages ▫By clicking on the “New Page” label at the bottom of the workfile you can create new pages

Exercise 1 Download the workshop data from the Economics and Business Webpage Open the Excel file EviewsLab_data, use the Macro Sheet. Create a new workfile for today’s workshop

Importing Data Copy and Paste Method 1.At the top, click Quick  Empty Group 2.Click on Cell 1 and press the “up” arrow on the keyboard 3.Open Excel and copy data 4.Paste data into EViews cell 1

Directly Importing Data from Excel To import directly, 1.After creating a new workfile 2.Close the excel file 3.File  Import  import from file 4.Browse for file 5.  next  next  finish

Exercise 2 Import Macro Data into Excel by copy and paste Import Micro Data into Excel by direct import (you’ll need to create a second workfile)

Finding Summary Statistics To display the summary statistics, show the group of variables that you want to summarize ▫Quick  Group Statistics  Descriptive Statistics  common sample

Exercise 3 Using the Macro Data, create a group for your independent variables Find the standard deviation for each variable

Generating New Variables To generate new variables, go to your workfile. Click on the Genr tab, and then type the equation you want for your new variable. When you hit enter, your new variable will appear in the workfile. To create a lag variable type variable(-1)

Running Basic Regressions Creating a new Equation ▫In your workfile: ▫Quick  Estimate Equation

Estimating Equation Separated by spaces: *dependent variable *constant, c *independent variables (or group) Type of regression Sample Range

Econometric Tests and Corrections Output of Equation Window Coefficient Summary Statistics To run tests Regression Summary Estimate— modify regression Stats—this current view Name your equation to save

Residuals-test for normality In your equation view --View  Actual, Fitted, Residual  Residual Graph

Plotting Residuals Versus Fitted Values To generate fitted values ▫In equation view: Forecast  click ok ▫Go to workfile: Object  New Object  graph ▫Graph resid “variablef” ▫Go to options  type  scatter

Testing for Normality In equation view ▫View  Residual Diagnostics  Histo gram-Normality Test ▫Look at Jarque- Bera stat

Correcting for Normality Problems To fix normality problems: you may need to change the functional form of your model

Testing for Heteroskedasticity In equation view: ▫View  Residual Tests  Heteroskedasticity Tests ▫Choose Test (typically White) ▫Look at Chi-Square value from table

Correcting for Heteroskedasticity In equation view ▫Estimate  options  change coefficient covariance matrix to White White Corrected

Testing for Multicollinearity Create a correlation matrix ▫Show your independent variables ▫View  covariance analysis  Select “correlations” (unselect “covariance”)  Off diagonal values should be less than 0.6

Exercise 4 Plot your fitted values vs. residuals Check for Normality of errors Check for multicollinearity Check for heteroskedasticity

Getting Help For general instructions and commands: ▫Visit the EViews PDFs ▫Go to start  Programs  Eviews7  Click on Command Reference or User Guides

Questions? If you have additional questions after today please stop by Palmer 101 F or lege.edu