This document provides an overview of SPSS and STATA software packages for econometric analysis. It discusses how to decide which software is better based on the type of analysis, the advantages of SPSS for descriptive statistics and its limitations for advanced analysis, and the strengths of STATA for handling large datasets, advanced statistical procedures, and its expandability through user-developed tools. It also introduces the basic structure and windows of SPSS, including the data editor, output navigator, and syntax editor. Finally, it outlines the different versions of STATA software.

1. Srinivasulu Rajendran
Centre for the Study of Regional Development (CSRD)
School of Social Sciences (SSS)
Jawaharlal Nehru University (JNU)
New Delhi - 110067
India
r.srinivasulu@gmail.com

2. Objective of the session
To understand the
fundamental
knowledge of
STATA/SPSS package

3. 1. How do we decide better
software for the econometric
analysis
2. Why do we need SPSS and
STATA?
3. Introduction to STATA/SPSS
and Differences

4. How do we decide better software
for the econometric analysis
SPSS SAS
STATA
R
E-Views
GAMS

5. It depends on
your analysis

6. Most preferred Packages for the
relevant analysis based on
Literature
 Descriptive Statistics - SPSS
 Cross section , Time series and panel data and
Complex Data Management system – STATA and SAS
 Advanced Econometrics analysis – STATA
 Advanced Econometrics Analysis - Linear
Programming – R
 Time series analysis - Eviews
 Qualitative Limited Dependent Variable Analysis -
STATA

7. Why do we need SPSS?
SPSS is the statistical
package most widely
used by political
scientists NOT by
econometrician. There
are several reasons for
why

8. It is easier to handle and widely used for descriptive
statistics and basic statistical analysis.
One can use it with either a Windows point-and-
click approach or through syntax (i.e., writing out of
SPSS commands). Each has its own advantages, and
the user can switch between the approaches.
Many of the widely used social science data sets
come with SPSS format; this significantly reduces the
work load for transferring the data into SPSS format.
Source: Harvard-MIT Center

9. Limitations
 Firstly, SPSS users have less control over statistical output than
many other packages
 For beginner , this hardly causes a problem, but once a
researcher wants greater control over the equations or the
output, she or he will need to either choose another package or
learn techniques for working around on SPSS Limitations.
 Secondly, SPSS has problems with certain types of data
manipulations But once a researcher begins wanting to
significantly alter data sets, he/she will have to either learn a new
package or develop greater skills at manipulating SPSS.
 Source: Harvard-MIT Center

10. Overall, SPSS is a friendly
package for beginner users
NOT for EXPERTS in the field
of ECONOMETRICS.

11. Why do we need STATA?
 “STATA is ideal for people who are developing
or modifying statistical procedures…” Acock
(2005)
 STATA is adequate on basic analysis but
extraordinary on multivariate analysis,
complex survey designs, limited dependent
variables, epidemiological methods, survival
analysis, panel designs, time series, and
diagnostics
 STATA - fast and clear
 Can handle large dataset with quick output

12. Cont.,
 STATA have the strongest collection of advanced
statistical procedures.
 STATA has a command structure that is simple and
consistent
 The consistency of STATA is impressive
 User-developed procedures can be installed over the
Internet without leaving STATA
 The expandability of STATA is its special strength
 The documentation for STATA is excellent, and the
ability to download data sets that are used in the
examples in the documentation is very helpful
 More information – reference course manual.

13. Introduction to SPSS
 SPSS (Statistical Package for the Social Sciences) is a
statistical analysis and data management software
package. It can generate tabulated reports, charts, and
plots of distributions and trends, descriptive statistics,
and conduct complex statistical analyses.
More details in SPSS manual

14. Structure of SPSS
There are six different windows that can be opened when
using SPSS. (Ref:details Babu and Sanyal, 2009 and
SPSS guide 17.0)
1. Data Editor,
2. Output Navigator,
3. The Pivot Table Editor
4. The Chart Editor
5. The Text Output Editor and
6. The Syntax Editor.

15. Data Editor Window

16. This window contains 11 menus
such as File, Edit, View, Data,
Transform, Analyze, Graphs,
Utilities, Add-ons, Window and
Help.

17. Open File

18. Data Editor
 In the Data Editor, if you put the mouse cursor on a
variable name (the column heading), a more
descriptive variable label is displayed (if a label has
been defined for that variable).
 Further, to view the label one can also choose the
“view” and “value labels”. Descriptive value labels are
now displayed to make it easier to interpret the
responses.

19. Output Navigator or Viewer
 The Output Navigator window displays the statistical
results, tables, and charts from the analysis you
performed.
 An Output Navigator window opens automatically
when you run a procedure that generates output
 In the Output Navigator windows, you can edit, move,
delete and copy your results in a Microsoft Explorer-
like environment.
 Running a Analysis

21. The Syntax Editor

22.  Creating and Data manipulation – Defining
variables, Reading data, Transforming data and
Creating tables

23. Introduction to STATA
 Stata is a general-purpose statistical software
package created in 1985 by StataCorp.

24. There are four major builds of each
version of Stata
1. Stata/MP for multiprocessor
computers,
2. Stata/SE for large databases,
3. Stata/IC which is the standard
version,
4. Small Stata which is a smaller,
student version of educational
purchase only

25. STATA MP
Stata/MP is the fastest and
largest version of Stata.
Stata/SE, Stata/IC, and Small
Stata differ only in the
dataset size that each can
analyze.

26. Computer Feature
Fastest:
Max. no. of 64-bit
Max. no. of Max. no. of designed for
Package right-hand version Platforms
variables observations parallel
variables available?
processing?
Windows, Mac
Stata/MP 32,767 10,998 unlimited* Yes Yes (64-bit Intel),
or Unix
Windows,
Stata/SE 32,767 10,998 unlimited* Yes No
Mac, or Unix
Windows,
Stata/IC 2,047 798 unlimited* Yes No
Mac, or Unix
Windows,
Small Stata 99 99 1,200 Yes No
Mac, or Unix
*The maximum number of observations is limited only by the amount of available RAM on your system.
Source: http://www.stata.com/products/which-stata-is-right-for-me/

27. Requirements
Package Memory Disk space
Stata/MP 512 MB 500 MB
Stata/SE 512 MB 500 MB
Stata/IC 512 MB 500 MB
Small Stata 512 MB 500 MB
Source: http://www.stata.com/products/which-stata-is-right-for-me/