Problem 6.23

Download:  0623.dat0623.xls
 

Log(V/L)
logW
3.6973
2.9617
3.4795
2.8532
4.0004
3.1158
3.6609
3.0371
3.2321
2.8727
3.3418
2.9745
3.4308
2.8287
3.3158
3.0888
3.5062
3.0086
3.2352
2.9680
3.8823
3.0909
3.7309
3.0881
3.7716
3.2256
3.6601
3.1025
3.7554
3.1354
 Estimate the regression

log(V/L) = log£]1+ £]2logW + U

Verify that the estimated elasticity is 1.3338 (Eviews) and that it is not statistically signifcantly different from 1.(Suggested Answer)
 

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