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Based on annual data for the U.S. manufacturing sector 1945-1994, a study estimates a production function using the...

Posted: Tue Aug 03, 2021 7:22 am
by answerhappygod
This Problem Setup is the same for THIS QUESTION and for THE NEXT FIVE QUESTIONS (6 questions total).
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A production function for the U.S. data can be expressed as Yt = AKtb1Ltb2 where A = Total factor productivity
Yt = Real output (in constant 1900 dollars)
Kt = Quantity of capital (in constant 1900 dollars) Lt = Labor hours/week

β β
This expression can be linearized by taking the natural logarithms of each side of this equation. Based on annual data for the U.S. manufacturing sector 1945-1994, a study estimates a production function using the logarithms of the data and obtains the following regression results,
Dependent Variable: lnYt
Coefficient Value
Standard Error of the Slope
Intercept (b0) lnKt (b1)
lnLt (b2)
Regression
Error
Total
df
2.81 1.38 0.53 0.27 0.91 0.14
SS (sum of squares)
F-statistic
6.745406
p-value
0.010000
2
47
___ _______
203693.3 181184.1
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What is the value of SST?


384877.4