1.4 The table shows the average annual percentage rates of growth of employ- ment, e, and real GDP, g, for 25 OECD count

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1 4 The Table Shows The Average Annual Percentage Rates Of Growth Of Employ Ment E And Real Gdp G For 25 Oecd Count 1 (390.17 KiB) Viewed 9 times

1.4 The table shows the average annual percentage rates of growth of employ- ment, e, and real GDP, g, for 25 OECD countries for the period 1988-97. The regression output shows the result of regressing e on g. Provide an interpreta- tion of the coefficients. Average annual percentage rates of growth of employment and real GDP, 1988-97 Australia Austria Belgium Canada Denmark Finland France Germany Greece Iceland Ireland Italy Japan Employment 1.68 0.65 0.34 1.17 0.02 -1.06 0.28 0.08 0.87 -0.13 2.16 reg e g Source 1 -0.30 1.06 14.5753023 Model 1 Residual 1 10.1266731 e I I g cons I SS Total I 24.7019754 Coef. .489737 -.5458912 GDP 3.04 Korea 2.55 Luxembourg 2.16 Netherlands 2.03 2.02 1.78 2.08 2.71 2.08 1.54 6.40 1.68 2.81 df 1 23 24 Std. Err. .0851184 .2740387 New Zealand Norway Portugal Spain Sweden Switzerland Turkey United Kingdom United States MS 14.5753023 .440290135 1.02924898 p>|t| 5.75 0.000 -1.99 0.058 t Employment 2.57 3.02 1.88 0.91 0.36 0.33 0.89 -0.94 0.79 2.02 0.66 1.53 Number of obs= F(1, 23) Prob > F R-squared = = = Adj R-squared = Root MSE = .3136561 -1.112784 GDP 7.73 5.64 2.86 2.01 2.98 2.79 2.60 1.17 1.15 4.18 1.97 2.46 25 33.10 0.0000 0.5900 0.5722 .66354 [95% Conf. Interval] .6658179 .0210011 1.5 In Exercise 1.4, ē= 0.83, 8 = 2.82, Σ(e; -)(8₁ - 8) = 29.76, and Σ(g, -8) = 60.77. Calculate the regression coefficients and check that they are the same as in the regression output.