README

This file contains everything necessary to reproduce all the results in “Not Evidence for Baumol’s Cost Disease” by Akinwande Atanda and W. Robert Reed. All the results were produced using Eviews (Version 10).

The data were acquired from the author of the original study, Jochen Hartwig, via email on January 1, 2014 and consisted of an Eviews workfile. We deleted some of the variables that Hartwig included as they were not necessary to reproduce Tables 1 and 2 from our replication. Following Hartwig, we created pooled objects following the commands and options that he used in his original workfile.

The variables in the workfile have the same names as in the text.

Tables 1 and 2 consist of three columns: (1) OLS, (2) Cross-section R.E., and (3) Time period R.E. 

To reproduce the OLS results, refer to the files below:

The pooled objects “ols1” and “ols2” produce the OLS results for Tables 1 and 2. The files “ols_wald_hartwig1” and “ols_wald_correct1” are the output associated with the Wald tests at the bottom of Table 1. “ols_wald_hartwig1” are the results from implementing Hartwig’s incorrect hypothesis test, and “ols_wald_correct1” are the results from the correct hypothesis test.

Reproduction for the (2) Cross-section R.E., and (3) Time period R.E. results for Tables 1 and 2 in the paper follows analogously using the files below:

Cross-section R.E.:

Time period R.E.:

Questions can be directed to the corresponding author, W. Robert Reed, at bob.reed@canterbury.ac.nz.