We now discuss some of the basic skills required to start productive use of PcGets. To do so, we will first provide a brief introduction to GiveWin. Even though PcGets and GiveWin are separate programs, they work closely together: GiveWin provides the data which PcGets analyses, and receives all the text output and graphs which you create in PcGets. When you start PcGets, it automatically starts up GiveWin (or will connect to the version which is already active). The aim of this tutorial is just to load data and create graphs, briefly noting how to transform data using the calculator: for instructions on how to implement algebra, consult the GiveWin book. In particular, we advise reading the chapter in GiveWin `Getting Started' before this one. The present chapter closely follows the corresponding chapter in PcGive Volume I (see Hendry and Doornik, 2001), so can be skipped by PcGive users.
As noted in the previous chapter, the convention for instructions that you should type is that they are shown in Typewriter font. Capitals and lower case are only distinguished as the names of variables in the program and the mathematical formulae you type. Once GiveWin and PcGets have started, then from the keyboard, the Alt key accesses line menus (at the top of the screen); from a mouse, click on the item to be selected. Commands on menus, toolbar buttons, and dialog items (buttons, checkboxes etc.) are shown in Sans Serif font. Common commands have a shortcut on the toolbar.
We assume that you have the basic skills to operate programs under the Windows operating system (the GiveWin books provides some hints). PcGets works on Windows NT/2000 or Windows 95/98/ME, but the screen appearance of the program and dialogs will reflect the operating system you are using.
First start GiveWin, then PcGets can be started from the Modules menu of GiveWin or, more conveniently, from the Modules group in the workspace window on the left-hand side of GiveWin. The next capture shows GiveWin with PcGets just below it. Inside GiveWin, the mouse is on the PcGets module in the workspace, while we reduced PcGets itself to a small window:
Without data, PcGets cannot operate, so the first step is to load data into GiveWin which PcGets can then access. All of the tutorials use one of the data sets called M1UK.IN7, DHSY.IN7 or XsVars.in7. The first comprises data on narrow money (M1), income (total final expenditure in constant prices, TFE), the deflator of TFE (from which inflation is derived) and an interest rate measuring the opportunity cost of holding money: see Hendry and Ericsson (1991b), Hendry (1995a), and Hendry and Doornik (1994). Its sample period is 1963(1)--1989(2), seasonally adjusted. The second data set is named DHSY as an acronym (see Davidson, Hendry, Srba and Yeo, 1978), and contains observations on UK aggregate consumers' expenditure and personal disposable income (both in constant prices) and the deflator of the latter. Its sample period is 1959(1)--1976(2), and is not seasonally adjusted. Both of these data sets (including subsets or extensions thereof) have been extensively analyzed by other investigators including Hendry (1979), Hendry (1985), Ericsson, Campos and Tran (1990), Boswijk (1992), Johansen (1992), Hendry and Mizon (1993), Harris (1995), Paroulo (1996) and Rahbek, Kongsted and Jørgensen (1999) for the former; and Bean (1977, 1978), Hendry and von Ungern-Sternberg (1981), Carruth and Henley (1990), Hendry, Muellbauer and Murphy (1990), Hendry (1994), and Muellbauer (1994) for the latter. The final data set is computer generated, and is described in Chapter 6.
The IN7 extension indicates a PcGive 7 data file (a format which remained the same for versions 8 through 10). The IN7 file is a human-readable file, describing the data. There is a companion BN7 file, which holds the actual numbers (in binary format, so this file cannot be edited). GiveWin can handle a wide range of data files, among them Excel (.XLS up to version 4) and Lotus files (.WKS and .WK1), and of course plain human-readable (ASCII) files. You can also cut and paste data between Excel and GiveWin. Details are provided in the GiveWin book.
We shall load the M1UK data set here. There are two methods. In the first, click on the Open Data File icon, the third along. To see what it does, hold the mouse cursor against it:
Alternatively, access the File menu in GiveWin:
and choose Open. If you installed in the default directory structure, the data will be in the \PcGets directory, so locate that directory and select M1UK:
The data file will be loaded, and displayed minimized at the foot of the GiveWin window:
Bring the window into view, by clicking on the icon with two overlapping boxes, to show the actual database contents (note that the right-most panel of the status bar shows the data value with maximum accuracy):
Double clicking on the variable name shows the documentation of the variable. For the m variable:
The data can be manipulated, much like in a spreadsheet program. Here we shall not need these facilities, so minimize the window again (click on the first button in the right-hand side of the window: shown as -). Do not click on the cross: this closes the database, thus removing it from GiveWin and so PcGets.
The graphics facilities of GiveWin are powerful yet easy to use. This section will show you how to make time-plots and cross-plots of variables in the database. GiveWin offers automatic selections of scaling etc., and you will be able to edit these graphs, and change the default layout such as line colours and line types. Graphs can be plotted in separate windows, or combined in multiple plots. Moreover, you can copy and paste within such multi-graph windows, as well as between windows. Finally, graphs can be saved in a variety of formats for later use in a word processor, or for reloading to GiveWin.
Graphics is the first entry on the Tools menu. Activate the command, or click on the `time-series' graphics icon on the toolbar:
to see the following dialog box:
This dialog has two multiple selection list boxes. In such a list box you can mark as many items as you want. Here we mark all the variables we wish to graph. With the keyboard you can only mark a single variable (by using the arrow up and down keys) or range of variables (hold the shift key down while using the arrow up or down keys). With the mouse there is more flexibility:
Here, select m and p, then press the << button to move the database variables to the selection listbox, as shown above. Then press the button labelled Actual values plot. The graph which appears is shown in Figure Figure:2.1.
GiveWin can draw multiple graphs simultaneously on-screen: just click on the Graphics toolbar button again, re-select both m and p (in this order, you can also double click on a database variable to select it), and click on XY (Scatter plot).
Graphs can be edited while on screen. Double click on the cross plot, select the Regression, Scale page in the Graphics Properties dialog, and add a regression line as shown in Figure Figure:2.2. The GiveWin book describes them in more detail.
To print a graph directly to the printer, click on the printer icon in GiveWin. You can preview the result first using the Print Preview command from the File menu.
Graphs can be saved to disk in various formats:
Two options are available for transforming data: by algebra or by a dialog approach, which mimics the operation of a pocket calculator. We only consider the latter, which is the simplest. Press on the Calculator button:
leading to the capture shown below (or via the Tools menu, and Calculator choice).
GiveWin and client modules are sensitive to the case of the variable names so that `m', `M', and `M' are treated as different variables. This can be useful for distinguishing real (lower case) from nominal (capitals) variables, or logs from levels, etc.
GiveWin often offers a default name for a newly-created variable:
Transform by taking the first difference of m, as follows Click on the m variable just to highlight it (i.e., don't double click), and then on the diff button, accept a lag length of one, to see in the top part of the dialog:
Click on the large button with the = sign, and accept the default name of Dm, which will be created in the database, and added to the list of variables. Another transformation to try is: m-p: double click on m, click on the minus button, and then double click on p. The expression now reads m-p, press on = (or the enter key) to evaluate. Name the variable mp (you could use a name like m-p, but must enclose such a name in double quotes when using it in expressions).
This completes the `getting started' chapter. We hope that you're equipped now for more substantial econometric modelling exercises.
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