/* Functional Forms and Phillips Curve (1960-1969) */ /* Load Data */ import excel "C:\Documents\Classes\Econ4230\R_and_Stata\Data\phillips60.xlsx", sheet("Sheet1") firstrow /* Generate Reciprocal RHS Term */ gen invUN = 1/UN /* Least Squares Estimation of Reciprocal Model */ regress Inf invUN /* Generating Predicted Values */ predict yhat, xb /* Estimating Box-Cox Model */ boxcox Inf UN, model(rhsonly) /* Generating Box-Cox Predicted Values */ predict yhat2 /* Combining Three Plots */ twoway (scatter Inf UN) (line yhat UN) (line yhat2 UN)