A researcher is investigating the impact of a firm's capital intensity on its labour productivity using datafor the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy and the UK.She has estimated the following model:LP 190 +0.3 × CAPIN - 31.8 × FR + 65.4 × SE + 15.8 × UK - 25.1 × ITwhere:LP is the firm's labour productivity (measured as turnover per employee, in €000s per employee);CAPIN is the firm's capital intensity (measured as total assets per employee, in €000s per employee);FR is a dummy variable that takes the value 1 if the firm is French and 0 otherwise;SE is a dummy variable that takes the value 1 if the firm is Swedish and 0 otherwise;UK is a dummy variable that takes the value 1 if the firm is British and 0 otherwise;IT is a dummy variable that takes the value 1 if the firm is Italian and 0 otherwise.Enter in the box below the predicted value of labour productivity for a British firm with a capital intensityof € 250 000 (CAPIN=250):Answer:

Given information: LP = 190 + 0.3 * CAPIN - 31.8 * FR + 65.4 * SE + 15.8 *UK - 25.1 * IT Where: LP…

A researcher is investigating the impact of a firm's capital intensity on its labour productivity using data for the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy and the UK. She has estimated the following model: LP 190 +0.3 x CAPIN - 31.8 x FR + 65.4 × SE + 15.8 x UK - 25.1 x IT

A researcher is investigating the impact of a firm's capital intensity on its labour productivity using data for the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy and the UK. She has estimated the following model: LP 190 +0.3 x CAPIN - 31.8 x FR + 65.4 × SE + 15.8 x UK - 25.1 x IT

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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