Econometrics Essay Example | Topics and Well Written Essays - 2000 words - 2

Econometrics - Essay Example velopment to fulfill international expectations, high excellent of job and items, up-to-date engineering, consumer as well as environmental responsibility and robust networks in conducting company operations. More importantly, the competition of Thai market, particularly SMEs, has usually relied in low-cost job and normal resource advantages as opposed to technological capability or qualified human investment capital. Many models of growth along with development suppose that end result is generated with a two component, CobbDouglas specification for your aggregate production function using physical capital and work or Man capital adjusted labor helping as inputs. The CobbDouglas specification could be the only linearly homogenous production function that has a constant elasticity of substitution in which each factor’s Share of income is constant over time. Since this latter implication with the CobbDouglas specs is considered consistent with among stylized information of development, that this shares involving income accruing to help capital along with labor are relatively constant over time most researchers have not questioned the application of a CobbDouglas production function to check questions involving growth along with development. The linear homogeneity along with constant elasticity of alternative properties with the CobbDouglas specification also can explain this popularity with this functional style (Duffy & Papageorgiou 2000, p. 1). In all forms of production of one good with multiple factors, the formulation is presented as. Y represents the total production, L represents labor input, K represents the capital input, and A represents the total output by the factory. Regression evaluation generates the equation to spell it out the statistical relationship between more than one predictor variables along with the response varying. The p-value for every term checks the null hypothesis, which the coefficient is equal to zero (no effect). A low p-value