Introduction to Eviews Workshop September 6 2012 2

Introduction to Eviews Workshop September 6, 2012 2: 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 Econ. Lab 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 Your workfile saves your groups all your work (data), tables, equations, variables, and graphs in one convenient location. Constant in the model Series Equation Graph Group

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 Eviews. Lab_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 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 To run tests Regression Summary Coefficient Summary Statistics Estimate— modify regression Stats—this current view Name your equation to save

Residuals-test for normality • In your equation view --View Actual, Fitted, 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 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 Eviews 7 Click on Command Reference or User Guides

Questions? If you have additional questions after today please stop by Palmer 101 F or email Cassandra. M. Benson@Colorado. Col lege. edu