# clear environment

rm(list = ls())

setwd("C:/R Prog/R")

# libraries
library(foreign)
library(AER) # package for the book Applied Econometrics with R
library(ivpack) # package for IV and 2SLS
library(lmtest) # package for standard errors
library(sandwich) # package for standard errors
library(Hmisc) # Package for descriptive statistics

ajrd<- read.dta("ajr.dta")
summary(ajrd)
describe(ajrd)

ols1<- lm( loggdp ~ risk, data= ajrd )

summary(ols1)

var.ols1 <- vcovHC(ols1 , type = "HC1")

coeftest(ols1, vcov = var.stage2)

ols2<- lm( risk ~ logmort0, data= ajrd )

summary(ols2)

var.ols2 <- vcovHC(ols2 , type = "HC1")

coeftest(ols2, vcov = var.ols2)

ols3<- lm( loggdp ~ logmort0, data= ajrd )

summary(ols3)
var.ols3 <- vcovHC(ols3 , type = "HC1")
coeftest(ols3, vcov = var.ols3)

iv1 = ivreg(loggdp ~ risk | logmort0, data = ajrd)

summary(iv1, vcov = sandwich)

ajrd$ed.hat <- predict(ols2)

stage2<- lm(loggdp ~ ed.hat, data= ajrd)

var.stage2 <- vcovHC(stage2, type = "HC1")

coeftest(stage2, vcov = var.stage2)

summary(iv1, vcov = sandwich)

ols2new<- lm( risk ~ logmort0 + malaria, data= ajrd )

summary(ols2)

var.ols2new <- vcovHC(ols2new , type = "HC1")

coeftest(ols2new, vcov = var.ols2new)

olsnew1 <- lm(loggdp ~ risk + malaria, data= ajrd)

summary(olsnew1)
var.olsnew1 <- vcovHC(olsnew1, type = "HC1")
coeftest(olsnew1, vcov = var.olsnew1)

iv2 = ivreg(loggdp ~ risk + malaria | logmort0 , data = ajrd)

summary(iv2, vcov = sandwich)

abs(ajrd$meantemp)
olssach<- lm( loggdp ~ risk+ malaria+ latitude+ rainmin + meantemp , data=
ajrd )
summary(olssach)

var.olss <- vcovHC(olssach , type = "HC1")

coeftest(olssach, vcov = var.olss)