Slide môn học Kinh tế lượng: Lecture 2 - Simple Regression Model
Output and labor use
Economic theory (theory of firms) predicts
An increase in labor use leads to an increase output in the SR, as long as MPL>0, other things being equal
From the data:
consistent with common sense
the relationship looks linear
Setting up:
Want to know the impact of labor use on output
=> Y: output, X: labor use