econometric

Annual data for 1929-1967 are obtained for Q = an index of U.S. GDP L - an index of labour input. K - an index of capital input A production function is estimated for the whole period as In O = -3.88 +1.41 In/ +0.42In K SSE =576 Regressions for two sub-periods yield 1929-1952 InO =-4.06 + 1.62 InZ + 0.22InK SSE =189 1953-1967 InO=-1.96 +0.83InZ +0.66InL SSE =48 (a) Test for the model stability over two sub-periods at the 5% level of significance. (Be sure to state the null and the alternative hypotheses, the test statistic, its distribution and d.f.. and the criterion for rejecting the null) (b) The p-value of the hypothesis test in (a), formula only