/* This program is for Monte Carlo Simulation: Model: ys = b1 + b2*x2 + e, b1 = b2 = 1/SQR(2) Compare the finite-sample biases in estimates b2 by MSE(MSCORE) and Probit. */ ? Define Sample Size CALC ; SS = 100 $ SAMPLE ; 1 - SS $ ? Define # of simulations CALC ; SN = 10 $ ? VALUE FOR B2 CALC ; TB2 = 1/SQR(2) $ ? INITIAL VALUE FOR BIAS BY MSE, PROBIT AND LOGIT CALC ; BIASMB2 = 0 ; BIASPB2 = 0 $ ? BEGIN THE PROCEDURE PROCEDURE CREATE ; X2 = RNN(1,1) ; E = RNN(0,1) $ CREATE ; YS = (1/SQR(2)) + (1/SQR(2))*X2 + E $ CREATE ; Y = YS>0 $ NAMELIST ; X = ONE,X2 $ ? MSE MSCORE ; LHS=Y ; RHS=X $ CALC ; BIASMB2 = BIASMB2 + (B(2,1)-TB2) $ ? PROBIT PROBIT ; LHS=Y ; RHS=X $ CALC ; BIASPB2 = BIASPB2 + (B(2,1)-TB2) $ ENDPROCEDURE EXECUTE ; SILENT ; I = 1, SN $ CALC ; LIST ; BIASM = BIASMB2/SN ; BIASP = BIASPB2/SN $