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 x SE + 15.8 x UK - 25.1 x IT where: 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. State the predicted value of labour productivity for a German firm with a capital intensity of € 350 000 (CAPIN=350): (No explanation needed at all...just the answer)
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 x SE + 15.8 x UK - 25.1 x IT where: 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. State the predicted value of labour productivity for a German firm with a capital intensity of € 350 000 (CAPIN=350): (No explanation needed at all...just the answer)
Chapter1: Making Economics Decisions
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Transcribed Image Text: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 x SE + 15.8 x UK - 25.1 x IT
where:
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.
State the predicted value of labour productivity for a German firm with a capital intensity of € 350
000 (CAPIN=350): (No explanation needed at all.. just the answer)
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