Microeconomics Report: Using the TSP a guide for students at the

1
Microeconomics Report Using the TSPa guide for
students at the ??????????

• If you are using a network browser to view this
  program, please use the back button to go to
  the previous page. Download the entire file to a
  disk and run the program from there. It will keep
  your machines from hanging as running
  PowerPoint on the net takes up a large amount of
  memory. Downloading point mouse to filename,
  right click and choose Save file.

2
Microeconomics Report Using TSP

• Checkpoints
• You have access to a computer terminal at the
  College and have at least ONCE opened the TSP
• You know how to run a simple TSP program for an
  Ordinary Least Squares (OLSQ) regression
• You know either how to use NotePad, EmEditor, or
  TeraPad or any other Text-File Editor.
• You have chosen your sample data you know what
  the dependent and independent variables are
• You have saved your files in a usable disk.
• IF YOU ARE UNABLE TO PUT A CHECK FOR YOURSELF FOR
  ANY OF THE ABOVE POINTS, GO BACK AND REVIEW
  LEARNING THE TSP1 AND LEARNING THE TSP2

3
Microeconomics Report Using TSP

• PREPARING SAMPLE DATA
• By now, you should have already downloaded the
  file Micro1.xls from the homepage, which looks
  like ?
• The FIRST LINE is the VARIABLE name. What do
  these mean?
• To get an idea what the Variable name stands for
  download microvar.txt from the homepage.
• Action
• Choose the variables you want.
• What is you dependent variable?
• What are the variables representing your
  objective constraint?
• What are the variables representing your
  subjective constraint?
• Next, select the columns of the corresponding
  variables you have picked and paste them to a new
  file.

4
Microeconomics Report Using TSP
Highlight the columns of the variables you have
picked. Paste these columns on to a new
worksheet.
5
Microeconomics Report Using TSP

• You have just created a sample data.
• Your new worksheet should now look like this
  (SAVE please)

Observation Number
Quantity of Tomatoes
Price of Tomatoes
6
Microeconomics Report Using TSP

• Save the Excel File as version4 ? c.f.
  LearningTSP1
• Note that in the trial runs for this program,
  somehow TSP is unable to read the newer Excel
  versions. If you are able to run Excel versions
  with TSP, please proceed like that.
• The next part will discuss how to use a text
  editor to create the sample data for use with
  TSP.

7
Microeconomics Report Using TSP

• Note first how many observations you have. This
  is your sample number.
• Select the entire worksheet where you have
  created your sample data.
• Paste this on to a text editor file. In these
  examples I will use EmEditor but you may use
  either TeraPad or NotePad
• Save this text file micro1.txt

8
Microeconomics Report Using TSP

• Preparing text file sample data

First, cut the variable name. Remember that it
will be hard to retype or even remember the
variable name, so it is better to select and
cut. (????) Paste this line to a new file or
anywhere you can retrieve it from for later use.
THIS IS HANDY FOR TSP.
9
Microeconomics Report Using TSP

• It should now look like this.
• Save.
• Mind how many observations you have.

Make sure The first line is the first
observation. All data are numbers. Saved the file.
Here, I have pasted the variable name line on a
blank text file to be used later
10
Microeconomics Report Using TSP

• The TSP program file.
• For this exercise, I will use the entire data
  sample in a text file, I have named imaginatively
  test2.txt. This contains 50 observations. The
  data set made available may contain MORE.
• I have chosen my dependent variable to be the
  quantity of coffee bought. The rest of the
  independent variables will be listed.
• Note we will learn how to (1) make a dummy
  variable, and (2) how to restrict your sample set.

11
Microeconomics Report Using TSP

• DO YOU HAVE YOUR FLOPPY DISK WHICH CONTAINS YOUR
  DATA? Then proceed.
• TSP Program
• You can see that if I had not cut save the
  variable names, I would take a long time to
  retype all the variable names. So be sure you
  know where your files are!
• - This set begins with the memory option and
• freq n
• smpl 1 50
• to denote the number of observations
• - Loading the Variables
• (text) load(filea\test2.txt) varnames
• OR
• (xls) load(filea\test2.xls) varnames

Step 1 Load the variables
12
Microeconomics Report Using TSP

• TSP Program
• Creating the Dummy Variable
• A dummy variable has only two values 1 or
  zero.
• The TSP command is
• select variablenamevalue varname20
  select 1
• - for example, a2 has values 1male and
  2female, to change into a dummy
• select a22 a20 select 1
• means, choose all a22 and change to
  a20, do so for entire sample
• Now a2 has only two values 1 and zero.
• In this exercise, you must realize by now why A6
  and A7 are inherently dummy variables. (Why?)

Renaming Variables The TSP Command is rename
varname newvarname The new variable name must be
16 roman alphabet or numbers and NO SPACE within
the name! No special characters allowed! CREATE
YOUR OWN VARIABLE NAME!
13
Microeconomics Report Using TSP

• TSP Program
• Getting the Basic Statistics
• The TSP command is
• msd varname1 varname2
• The msd command will give you the mean, standard
  deviation, minimum and maximum values.
• Restricting the sample
• The TSP command is
• smplif varnamelt,gt,value
• Restrictions are OPTIONAL. You can run
  regressions on entire sample OR for only a part
  of the sample. In the example, I have restricted
  the sample to only the female population to see
  the demand of coffee by females.
• Running Ordinary Least Squares
• The TSP command is
• olsq depvarname c indepvar1,..n

14
Microeconomics Report Using TSP

• TSP Program
• The Results
• Basic Statistics
• Ordinary Least Squares
• Be sure to save the Input and Output Files!
• Now create tables for both the Basic Statistics
  and the Regression Results. Having at most 4
  decimal places would be desirable.

15
Microeconomics Report Using TSP
Reporting your results in table formats
16
Microeconomics Report Using TSP

• Based on these results, you should now be able to
  analyze the demand for coffee in the class. Write
  out your report and append a copy of the program
  (printout of output file only) to your report.
• The sample files indicated in this simple
  tutorial is available in the homepage, even the
  TSP program used.
• ????????
• ???????