Ing Electronica

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Econometric Analysis/LimDep Users Manual
By William H. Greene

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Table of Contents
Section Name
I. What is EA/LimDep
II. Installing and Starting EA/LimDep
III. A View of the Desktop
IV. A Short Demonstration
V. General EA/LimDep Info
VI. The Main Menu
VII. Using EA/LimDep

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Appendix: Using EA/LimDep
Most of the computations described inEconometric Analysis can be done with any modern general
purpose econometrics package, such as LIMDEP, Gauss, TSP, E-Views, etc. We have included on CD as
part of the text, a modified version of one of these programs, EA/LimDep, as well as the data sets and
program code that were used in the applications in the text.

I. What is EA/LimDep?
EA/LimDep is a computer program that you can use fornearly all the computations described in
Econometric Analysis. It is a trimmed version of a large commercial package, LIMDEP (for LIMited
DEPendent variable modeling), that is used by researchers in universities, government, and industry for the
same kinds of analyses done in this text. There are three differences between EA/LimDep and LIMDEP:
First, the size of data sets that you can analyzeare restricted to 50,000 values with up to 50 variables and up
to 1,000 observations. Second, LIMDEP’s very specialized procedures, such as the nested logit model and
advanced extensions of the Poisson regression model are not available in EA/LimDep. (You will be able to
do all of the computations described in Econometric Analysis save for the more advanced model extensions
in Chapters 19 and20.) Third, the number of parameters in a model is restricted to 15 parameters. (None
of the models estimated in the text were larger than this.) In all other respects, this is the full package - it is
not otherwise modified or restricted.
This appendix will give a very brief introduction to using EA/LimDep. The full manual for the program
has nearly 1,000 pages, so we will only be able tointroduce the list of program features. You will have a
copy of that manual installed on your computer when you install the program. The Help:Topics feature
contains the full manual minus some of the mathematical details. You can refer to this to learn more about
using EA/LimDep.

II. Installing and Starting EA/LimDep
EA/LimDep Requires Windows 95, 98, or NT. It will not run in DOS or inearlier versions of Windows.
To install EA/LimDep, simply place the CD in your D: or E: (CD) drive in your computer. Then, use
Start:Run to run D:\Setup to execute the setup program, or click the My Computer icon on your desktop,
then make your way to your CD drive, and double click the setup program, or open a DOS window and
execute the D:\Setup program. EA/LimDep’s setup will take only a minuteor two install the program, and
does not require you to make any decisions (other than where to put the program, which you can just leave
to the setup program). EA/LimDep will occupy about 6 megabytes on your hard disk.
Setup will place a LIMDEP item in your Start:Programs menu. You can invoke the program with
Start:Programs:LIMDEP. We find it convenient to put an icon on the desktop to makeit easier to start.
You can do this as follows: Double click My Computer on your desktop. Make your way to the Program
Files folder. You will find an ES folder, and under this, a Program folder. The Program folder will
contain an item for LIMDEP.EXE, with a square icon that suggests a plot of the normal CDF associated
with the probit model. Single click this icon to highlight it, then drag itto an empty place on your desktop.
The first time you invoke EA/LimDep, you will be asked to ‘Personalize’ your copy. This is not a
registration; you are just putting your name on your program. There are no serial numbers, no keywords,
and no registrations for EA/LimDep. This is free software. In fact, after you install it on your computer,
we hope you will pass your CD on to someone else, so...