'------------ Three-Stage Least Squares Estimation ------------ 
INPATH C:\Program Files\Betahat4.0
OPEN KLEIN.DT2
USE 2 22

'Define equations.
C.TSLS Consumption Constant Profits Profits(-1) Total_Wages @ Constant  &
   Profits(-1) Capital_lagged X(-1) Government_Wages G Taxes Trend  / NOESTIMATE
 
I.TSLS Investment Constant Profits Profits(-1) Capital_Lagged @ Constant  &
   Profits(-1) Capital_lagged X(-1) Government_Wages G Taxes Trend  / NOESTIMATE

PW.TSLS Private_Wages  Constant X X(-1) Trend  @ Constant  &
   Profits(-1) Capital_lagged X(-1) Government_Wages G Taxes Trend  / NOESTIMATE


   'Estimate linear 3SLS.
SYSTEM C I PW / INSTRUMENT=C