Create system from a pool object.
Syntax
pool_name.makesystem(options) y [x1 x2 x3 ...] [@cxeg w1 w2 ...] [@inst z1 z2 ...] [@cxinst z3 z4 ...]
Creates a system out of the pool equation specification. Each cross-section in the pool will be used to form an equation. The pool variable y is the dependent variable. The [x1 x2 x3 ...] list consists of regressors with common coefficients in the system. The @cxreg list are regressors with different coefficients in each cross-section. The list of variables that follow @inst are the common instruments. The list of variables that follow @cxinst are the equation specific instruments.
Note that period specific coefficients and effects are not available in this routine.
Options
name=name | Specify name for the system object. |
prompt | Force the dialog to appear from within a program. |
Examples
pool1.makesystem(name=sys1) inv? cap? @inst val?
creates a system named SYS1 with INV? as the dependent variable and a common intercept for each cross-section member. The regressor CAP? is restricted to have the same coefficient in each equation, while the VAL? regressor has a different coefficient in each equation.
pool1.makesystem(name=sys2,cx=f) inv? @cxreg cap? @cxinst @trend inv?(-1)
This command creates a system named SYS2 with INV? as the dependent variable and a different intercept for each cross-section member equation. The regressor CAP? enters each equation with a different coefficient and each equation has two instrumental variables @TREND and INV? lagged.
Cross-references
See
“System Estimation” for a discussion of system objects in EViews.