Skip to contents

Klein's Model I for the US economy.

Usage

data("KleinI")

Format

An annual multiple time series from 1920 to 1941 with 9 variables.

consumption

Consumption.

cprofits

Corporate profits.

pwage

Private wage bill.

invest

Investment.

capital

Previous year's capital stock.

gnp

Gross national product.

gwage

Government wage bill.

gexpenditure

Government spending.

taxes

Taxes.

Source

Online complements to Greene (2003). Table F15.1.

https://pages.stern.nyu.edu/~wgreene/Text/tables/tablelist5.htm

References

Greene, W.H. (2003). Econometric Analysis, 5th edition. Upper Saddle River, NJ: Prentice Hall.

Klein, L. (1950). Economic Fluctuations in the United States, 1921–1941. New York: John Wiley.

Maddala, G.S. (1977). Econometrics. New York: McGraw-Hill.

See also

Examples

data("KleinI", package = "AER")
plot(KleinI)


## Greene (2003), Tab. 15.3, OLS
library("dynlm")
fm_cons <- dynlm(consumption ~ cprofits + L(cprofits) + I(pwage + gwage), data = KleinI)
fm_inv <- dynlm(invest ~ cprofits + L(cprofits) + capital, data = KleinI)
fm_pwage <- dynlm(pwage ~ gnp + L(gnp) + I(time(gnp) - 1931), data = KleinI)
summary(fm_cons)
#> 
#> Time series regression with "ts" data:
#> Start = 1921, End = 1941
#> 
#> Call:
#> dynlm(formula = consumption ~ cprofits + L(cprofits) + I(pwage + 
#>     gwage), data = KleinI)
#> 
#> Residuals:
#>      Min       1Q   Median       3Q      Max 
#> -2.17345 -0.43597 -0.03466  0.78508  1.61650 
#> 
#> Coefficients:
#>                  Estimate Std. Error t value Pr(>|t|)    
#> (Intercept)      16.23660    1.30270  12.464 5.62e-10 ***
#> cprofits          0.19293    0.09121   2.115   0.0495 *  
#> L(cprofits)       0.08988    0.09065   0.992   0.3353    
#> I(pwage + gwage)  0.79622    0.03994  19.933 3.16e-13 ***
#> ---
#> Signif. codes:  0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
#> 
#> Residual standard error: 1.026 on 17 degrees of freedom
#> Multiple R-squared:  0.981,	Adjusted R-squared:  0.9777 
#> F-statistic: 292.7 on 3 and 17 DF,  p-value: 7.938e-15
#> 
summary(fm_inv)
#> 
#> Time series regression with "ts" data:
#> Start = 1921, End = 1941
#> 
#> Call:
#> dynlm(formula = invest ~ cprofits + L(cprofits) + capital, data = KleinI)
#> 
#> Residuals:
#>      Min       1Q   Median       3Q      Max 
#> -2.56562 -0.63169  0.03687  0.41542  1.49226 
#> 
#> Coefficients:
#>             Estimate Std. Error t value Pr(>|t|)    
#> (Intercept) 10.12579    5.46555   1.853 0.081374 .  
#> cprofits     0.47964    0.09711   4.939 0.000125 ***
#> L(cprofits)  0.33304    0.10086   3.302 0.004212 ** 
#> capital     -0.11179    0.02673  -4.183 0.000624 ***
#> ---
#> Signif. codes:  0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
#> 
#> Residual standard error: 1.009 on 17 degrees of freedom
#> Multiple R-squared:  0.9313,	Adjusted R-squared:  0.9192 
#> F-statistic: 76.88 on 3 and 17 DF,  p-value: 4.299e-10
#> 
summary(fm_pwage)
#> 
#> Time series regression with "ts" data:
#> Start = 1921, End = 1941
#> 
#> Call:
#> dynlm(formula = pwage ~ gnp + L(gnp) + I(time(gnp) - 1931), data = KleinI)
#> 
#> Residuals:
#>      Min       1Q   Median       3Q      Max 
#> -1.29418 -0.46875  0.01376  0.45027  1.19569 
#> 
#> Coefficients:
#>                     Estimate Std. Error t value Pr(>|t|)    
#> (Intercept)          1.49704    1.27003   1.179 0.254736    
#> gnp                  0.43948    0.03241  13.561 1.52e-10 ***
#> L(gnp)               0.14609    0.03742   3.904 0.001142 ** 
#> I(time(gnp) - 1931)  0.13025    0.03191   4.082 0.000777 ***
#> ---
#> Signif. codes:  0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
#> 
#> Residual standard error: 0.7671 on 17 degrees of freedom
#> Multiple R-squared:  0.9874,	Adjusted R-squared:  0.9852 
#> F-statistic: 444.6 on 3 and 17 DF,  p-value: 2.411e-16
#> 

## More examples can be found in:
## help("Greene2003")