Question
These are 2019/2020 data I downloaded from the FDIC.Ignore columns A-N which contain the raw downloaded data. In columns O, P, Q and R you
These are 2019/2020 data I downloaded from the FDIC.Ignore columns A-N which contain the raw downloaded data. In columns O, P, Q and R you will find variables that I have defined as Quantity (output, defined as assets and securities), Labor (number of employees), Capital (measured by bank premises) and Fuel (represented by interest bearing deposits). Estimate the following Cobb-Douglas production function: Quantity = *Labor1*Capital2*Fuel3. Use Excel to estimate this function in natural log form lnQuantity = ln + 1*lnLabor + 2*lnCapital + 3*lnFuel.
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