A Simple Script

Here is a simple script drawing a graph and running a regression, using Markdown annotations and Stata code indented four spaces:

% Dynamic Documents with Stata and Markdown
% Germán Rodríguez, Princeton University
% 4 November 2017
                                                                
Let us read the fuel efficiency data that ships with Stata
                                                                
    sysuse auto, clear                                          
                                                                
To study how fuel efficiency depends on weight it is useful to  
transform the dependent variable from "miles per gallon" to
"gallons per 100 miles"     

    gen gphm = 100/mpg
	
We then obtain a fairly linear relationship
                                                                
    twoway scatter gphm weight || lfit gphm weight,  /// 
        ytitle(Gallons per 100 Miles) legend(off)
    graph export auto.png, width(500) replace

![Fuel Efficiency by Weight](auto.png)

The regression equation estimated by OLS is

    regress gphm weight

Thus, a car that weighs 1,000 pounds more than another requires 
on average an extra 1.4 gallons to travel 100 miles. 

That's all for now!

And this is how it is rendered using the command markstat using auto

If you add the pdf option, you will obtain the pdf file seen here. If you use the option docx instead, you will obtain the Word document seen here. By the way this is basically the example in the markstat help file.