********************************
*Creates Table 1 and Figures
********************************
clear
capture log close
set more off, permanently
version 4
cd G:\daron\world_income_dist
log using maketable1_and_figures, replace

/*Data Files Used
	maketable1
	
*Data Files Created as Final Product
	none
	
*Data Files Created as Intermediate Product
	none*/

# delimit;

*** Note I included the countryn, d87 and id in barlee.dta to save on space here *****;

use barlee.dta;

********************** GENERATING THE VARIABLES **********************************;

gen opec=1 if (id==1|id==15|id==32|id==78|id==80|id==87|id==88|id==93|id==96|id==99|id==86);
recode opec .=0;

* Actually it turns out only 5 of these countries are in the smpl97 sample:
these are Algeria, Venezuela, Indonesia, Iran, Iraq *;

*gen opec=1 if
(id==15|id==32|id==78|id==80|id==87|id==88|id==93|id==96|id==99|id==86);
recode opec .=0;
* Here we include *;


gen gdpgr=((1+grsh52)*(1+grsh53)*(1+grsh54)*(1+grsh55))^(1/4)-1;
gen totgr=((1+tot2)*(1+tot3)*(1+tot4)*(1+tot5))^(1/4)-1;
gen loggdp=log(gdpsh565);

** GENERATING THE VARIABLES **;

rename syrm65 syrm;
rename syrf65 syrf;
rename hyrm65 hyrm;
rename hyrf65 hyrf;
rename pyrm65 pyrm;
rename pyrf65 pyrf;
rename syr65 syr;
rename hyr65 hyr;
rename pyr65 pyr;
gen yrm=syrm+hyrm+pyrm;
gen yrf=syr+hyrf+pyrf;
gen yr=syr+hyr+pyr;
rename lifee02 lifee; 
gen llifee=log(lifee);

gen invrat=(invsh52+invsh53+invsh54+invsh55)/4;
gen gvxdxe=(gvxdxe52+gvxdxe53+gvxdxe54+gvxdxe55)/4;

gen pright=(prights3+prights4+prights5)/3;
gen civilib=(civlib3+civlib4+civlib5)/3;
gen lbmp=(bmp2ml+bmp3l+ bmp4l+bmp5l)/4;
gen pinst=(pinstab2+pinstab3+pinstab4+pinstab5)/4;

gen ferti=(fert2+fert3+fert4+fert5)/4;
gen lferti=(log(fert2)+log(fert3)+ log(fert4)+log(fert5))/4;
gen wagepop=pop65*(1-pop1565-pop6565);
gen lwapop=log(wagepop);

gen difsyrm=syrm85-syrm;
gen difsyrf=syrf85-syrf;
gen difhyrm=hyrm85-hyrm;
gen difhyrf=hyrf85-hyrf;
gen difpyrm=pyrm85-pyrm;
gen difpyrf=pyrf85-pyrf;
gen difsyr=syr85-syr;
gen difhyr=hyr85-hyr;
gen difpyr=pyr85-pyr;
gen llifee85=log(lifee05);
gen diflife=llifee85-llifee;
gen differt=fert5-ferti;
gen difinvra=invsh55-invsh52;
gen difyr=difsyr+difpyr+difhyr;
gen difyrm=difsyrm+difpyrm+difhyrm;
gen difyrf=difsyrf+difpyrf+difhyrf;

*drop if countryn=="Jordan";

*--Please note that I do not have all the original data to reproduce this paper, so the # of obs - and hence the estimates - are a little bit different (but in general very similar). ;

** REGRESSION 1: **;

**** ***;
 ;

ivreg totgr (gdpgr=loggdp) yr llifee opec, first;
reg totgr gdpgr yr llifee opec;

drop if totgr ==.;
drop if gdpgr ==.;
drop if loggdp ==.;
drop if yr ==.;
drop if llifee ==.;

reg gdpgr loggdp yr llifee opec;
predict gdpgrhat;

reg gdpgrhat yr llifee opec;
predict gdpgrres, resid;

reg totgr yr llifee opec;
predict totgrres, resid;

reg totgrres gdpgrres;
predict fitted;

label var totgrres "Residual Terms of Trade Growth";
label var gdpgrres "Residual GDP Growth";

gr totgrres fitted gdpgrres if totgrres ~=., s([countryn].) connect(.l) 
ylabel(-.04 -.03 to .05) xlabel(-.02 -.015 to .025) l2title ("Residual Terms of Trade Growth") t1title("Whole Sample") saving("gr1.gph",replace);


** REGRESSION 2: **;



 
 

ivreg totgr (gdpgr=loggdp) syr hyr pyr llifee opec, first;
reg totgr gdpgr syr hyr pyr llifee opec;



** REGRESSION 3: **;

ivreg totgr (gdpgr=loggdp) yr llifee wardum lbmp pinst opec, first;
reg totgr gdpgr yr llifee wardum lbmp pinst opec;

** REGRESSION 4: **;



ivreg totgr (gdpgr=loggdp) yr difyr llifee diflife opec, first;
reg totgr gdpgr yr difyr llifee diflife opec;


** REGRESSION 5: **;



ivreg totgr (gdpgr=loggdp yr llifee) difyr diflife opec, first;
reg totgr gdpgr difyr diflife opec;


****regresion6*****;

keep if opec==0;
ivreg totgr (gdpgr=loggdp) yr llifee, first;
reg totgr gdpgr yr llifee;

drop if totgr ==.;
drop if gdpgr ==.;
drop if loggdp ==.;
drop if yr ==.;
drop if llifee ==.;

reg gdpgr loggdp yr llifee opec;
drop gdpgrhat;
predict gdpgrhat;

reg gdpgrhat yr llifee opec;
drop gdpgrres;
predict gdpgrres, resid;

reg totgr yr llifee opec;
drop totgrres;
predict totgrres, resid;

reg totgrres gdpgrres;
drop fitted;
predict fitted;

label var totgrres "Residual Terms of Trade Growth";
label var gdpgrres "Residual GDP Growth";

gr totgrres fitted gdpgrres if totgrres ~=., s([countryn].) connect(.l) 
ylabel(-.04 -.03 to .05) xlabel(-.02 -.015 to .025) l2title ("Residual Terms of Trade Growth") t1title("Non-OPEC Sample") saving("gr7.gph",replace);

*****basic graph****;


 
reg totgr gdpgr;
drop fitted;
predict fitted;
label var totgr "Terms of Trade Growth";
label var gdpgr "GDP Growth";

gr totgr gdpgr, s([countryn].) connect(.l) ylabel(-.04 -.025 to .095) xlabel(-.02 -.01 to .07) t1title("Whole Sample") saving("grttgrowth.gph",replace);

*****basic graph no oil****;


keep if opec==0; 
reg totgr gdpgr;
drop fitted;
predict fitted;
label var totgr "Terms of Trade Growth";
label var gdpgr "GDP Growth";

gr totgr gdpgr, s([countryn].) connect(.l) ylabel(-.04 -.025 to .095) xlabel(-.02 -.01 to .07) t1title("Non-OPEC Sample") saving("grttgrowthnooil.gph",replace);

graph using gr1.gph gr7.gph, saving("IVgraph.gph",replace);
graph using grttgrowth.gph grttgrowthnooil.gph, saving("basicgraph.gph",replace);
log close;