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# script to replicate Example 11.3 in Greene

open greene11_3.gdt
# run initial OLS
ols C 0 Y
scalar essbak = $ess
scalar essdiff = 1
scalar beta = $coeff(Y)
scalar gamma = 1

# iterate OLS till the error sum of squares converges
loop while essdiff > .00001 --quiet
   # form the linearized variables
   series C0 = C + gamma * beta * Y^gamma * log(Y)
   series x1 = Y^gamma
   series x2 = beta * Y^gamma * log(Y)
   # run OLS 
   ols C0 0 x1 x2 --print-final --no-df-corr --vcv
   beta = $coeff[2]
   gamma = $coeff[3]
   ess = $ess
   essdiff = abs(ess - essbak)/essbak
   essbak = ess
endloop 

# print parameter estimates using their "proper names"
printf "alpha = %g\n", $coeff[1]
printf "beta  = %g\n", beta
printf "gamma = %g\n", gamma