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Table below gives data for manufacturing sector of an economy for the period 1961-1987. a. Import the data into Microfit or EViews and produce plot
Table below gives data for manufacturing sector of an economy for the period 1961-1987. a. Import the data into Microfit or EViews and produce plot of relevant variables over time as well as the scatter graphs of Y against K and L. Very briefly discuss the nature of relationship in the data. b. Check correlation coefficient between variables and comment on the results. Can the the relationship between output and inputs be captured by a Cobb-Douglas production function. Very briefly comment on the results. c. Consider the following model: y = Ake u where y=Y/L and K=K/L. After linearising the model, estimate the parameters of the model and interpret the results. All parts carry equal weight. Please follow the structure of tutorial closely and include relevant outputs from the Microfit under relevant sections; keep your comments very brief
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