Procedures in the Eviews:

The follwoing table provides the estmation results for the follwoing equations.

INFLATIONit = β1 + β2 USAt + ut

where INFLATION represents the rate of inflation at time t for each country and USA represents the United States ' inflation rate at time t from 1960-1980.

For the United Kingdom:

Step 1 ------ Choose Estimate Equation from the Quick option
 

Step 2 ------ Enter the Dependent variable at first and type "c" as it represent the constant term
                    and then the rests are the independent variables
 

0513a.jpg (69022 bytes)

Step 3 ---- clik "OK" and you will see the following results:
 

0513b.jpg (125383 bytes)

Step 4 ----- do the same procedure for the other countries and you will run the following results:
 

0513c.jpg (144744 bytes)
0512e.jpg (145205 bytes)
0513f.jpg (142695 bytes)

Is there any relationship between each countries' inflation rate and USA's ?

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