Dear all,
Suppose I have the following dataset:
clear
input int year double(inf gdp)
1990 5.72458974 3.9071139
1991 6.68398563 9.29407591
1992 8.19824765 14.21616358
1993 15.20220481 13.86757602
1994 20.60060944 13.05215872
1995 13.6705391 10.94922737
1996 6.50109595 9.92837246
1997 1.62216042 9.23076923
1998 -.89258936 7.83761392
1999 -1.26840965 7.66748617
2000 2.06146138 8.49150849
2001 2.04311501 8.33991055
2002 .60485066 9.13064594
2003 2.60544121 10.03560303
2004 6.9543218 10.11122346
2005 3.90263978 11.39577594
2006 3.92791085 12.71947902
2007 7.74917984 14.23138804
2008 7.79180194 9.65428937
2009 -.2105339 9.39981317
2010 6.88114487 10.63614046
2011 8.07559638 9.55091409
2012 2.33512068 7.85962749
2013 2.16101914 7.76861528
2014 .791193 7.29951892
2015 .06269939 6.90531667
2016 1.07275629 6.73667525
2017 3.88416989 6.75700761
2018 2.93333231 6.56697386
end
I'd would like to calculate the expected inflation rate by using the t+1 real inflation rate as the dependent variable(the inf in the dataset) and the t real inflation rate and t real GDP(the gdp in the dataset) growth rate as independent variables. How can I construct my codes to reach this goal?
Note: this regression is based on the thoery of Phillips Curve.
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