Qi Li, Desheng Ouyang, and Jeffrey S. Racine, "Categorical Semiparametric Varying Coefficient Models," Journal of Applied Econometrics, Vol. 28, No. 4, 2013, pp. 551-579. This file contains R code based on the np package to replicate the wage example of this paper. The code is titled vc_discrete.R. Results were generated using R 2.13.0 and the np package version 0.40-6 The files vc_discrete.R and vc_discrete.Rout are zipped in the file progs-lor.zip. They are ASCII files in DOS format, so Unix/Linux users should use "unzip -a". Jeffrey S. Racine racinej [AT] mcmaster.ca