Econometric Computing with GAUSS

Table of Contents

• Introduction to GAUSS Language
• Creating and Editing a GAUSS Program
  Lesson 2.1
• File I/O and Data Transformation
  Lesson 2.2
  Lesson 2.3
• GAUSS Built-In Functions
  Lesson 2.4
• Controlling Execution Flow
• Writing Your Own Functions
• User Library
• GPE Package
  A typical GPE program

Examples

• Do you know the accuracy of your computer's numerical calculation? The following example is addressed to this important problem. Suppose e is a known small positive number, and the 5x4 matrix X is defined as follows:

  1  1  1  1
  e  0  0  0
  0  e  0  0
  0  0  e  0
  0  0  0  e
  

  Verify that the eigenvalues of X'X are 4+e², e², e², and e². How small of the value of e your computer will allow so that X'X can be inverted? (Program).

• Using GAUSS to present and solve the following functions:
  1. f(x) = ln(x) - x²
     Hint: The maximal of f(x) is found at x = Ö½ or 0.707. (Program).

  2. g(x) = (x₁² + x₂ - 11)² + (x₁ + x₂² -7)²
     Hint: There are four minima: (3, 2), (3.5844, -1.8481), (-3.7793, -3.2832), (-2.8051, 3.1313). (Program).

• Write a single-line GAUSS function to convert a quarterly time series into the annual series by taking the average of every four data points. How you extend the single-line version of time series conversion function to a multi-line procedure so that it can handle the conversion of more than one time series? (Program).