A researcher is investigating the determinants of firm labour productivity using data for the year 2014 for a sample of manufacturing firms from the electronics industry. She uses the following model: LP = bo + b₁ x CAPIN-b2 x W + b3 × SIZE + b4 × RD
A researcher is investigating the determinants of firm labour productivity using data for the year 2014 for a sample of manufacturing firms from the electronics industry. She uses the following model: LP = bo + b₁ x CAPIN-b2 x W + b3 × SIZE + b4 × RD
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1.3CE
Related questions
Question
Chose
a) is / is not
higher / lower
b) is / is not
higer / lower
Transcribed Image Text:A researcher is investigating the determinants of firm labour productivity using data for the year 2014 for
a sample of manufacturing firms from the electronics industry. She uses the following model:
LP = bo + b₁ x CAPIN - b₂ x W + b3 × SIZE + b4 x RD
where:
LP is the firm's labour productivity (measured as turnover per employee, in €000s);
CAPIN is the firm's capital intensity (measured as total assets per employee, in €000s);
W is the firm's average wage per employee, in €000s;
SIZE is an indicator of the size of the firm (measured by the log of its turnover, in €000s);
RD is the firm's R&D intensity (measured as the firm's R&D expenditure divided by its turnover), an
indicator of how innovative the firm is.
The results of the estimation are:
Variables
CAPIN
W
SIZE
RD
Constant
Coefficients
0.364
a) the variable CAPIN
1.333
3.237
b) the variable RD
variable is
-21.982
19.039
Standard
Errors
the p-value of the CAPIN variable is
0.014
0.428
Note: The researcher is using a 5% significance level.
5.822
11.867
From the results of the estimation we can conclude that:
61.513
t-values
25.990
3.110
0.560
than the significance level.
-1.850
0.310
p-values
Select the terms from the drop down lists to complete the sentences below correctly:
0.000
✓than the significance level;
0.002
0.579
0.066
0.757
associated with the firm's productivity because the magnitude of
associated with the firm's productivity because the p-value of the RD
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