DIRECTIONS FOR INSTALLING AND RUNNING THE GRETL PROGRAM

INSTALLING GRETL ON YOUR HOME COMPUTER

Even if you have the CD that came with the book, download GRETL from the internet because it has the latest version.
Use a web browser and type the address http://econ.ucsd.edu/~rramanat/gretl.htm. Then click the "gretl_install.exe" link and choose "gretl for win32" link and click "gretl_install.exe". Next choose any North American mirror and click the number 6399 (say, for the one from Pheonix, Arizona). Follow directions and don't change any of the default settings.

RUNNING GRETL

1. Click the GRETL icon, then select FILE, open data, sample file, Ramanathan, highlight data4-11 (private housing authorized), and click OPEN. A list of variables will appear.
2. Click MODEL and select Ordinary Least Squares. On the dialog box, click "housing" and then the CHOOSE button. This will specify housing as the dependent variable.
3. Highlight the variables density, value, ..., statetax and click the ADD button. This will select all the independent variables (const is the constant term with a value of all 1's).
4. Click the OK button at the bottom left hand corner and note that the estimated model and associated statistics instantly appear (Model 1).
5. Select "Tests" from the menu list at the top. Then click "omit variables". Choose "local tax" and click the SELECT and OK buttons to estimate Model 2.
6. Repeat Step 5 but this time omit "unemprt" to get Model 3.
7. Repeat the steps and omit "state tax". This gives Model 4.
8. Next omit "density" (Model 5).
9. Close all the model windows until you see the original window with the variables for data4-11. Then click SESSION and "save as". In the file name box type "DATA4-11". You will get a message saying that the list of commands is in C:\userdata\gretl\user\data4-11.gretl and the output is in C:\userdata\\gretl\user\data4-11.txt.
10. Open NOTEPAD, select EDIT and "set font" to Courier New, Regular, font size 10. This will make sure that the output fits in a page. Then choose the file C:\gretl\user\data4-11.txt, print it, and bring it to class.