Question: You have to solve the Homework with using a Dataset_MRW.xlsx file.
Download the file "Dataset_MRW.xlsx" from the course website which contains the data from the appendix of Mankiw, Romer & Weil (1992) - for the non-oil sample (make sure you read the paper beforehand). Throughout let d + g = 5%. Using this dataset and the tools you learned in class, run the following regressions (you do not need to present the excel file with the regressions, report only the results required in each part):
log (y85) = a + b1 log (sk) + b2 log (n + d + g). Report the OLS estimates for b1 and b2, the R2, and the p-values for the t-tests for b1 and b2. Provide an interpretation of the OLS estimate for b1.
log (y85) = a + b1 log (sk) + b2 log (n + d + g) + b3 log (sh). Report the OLS estimates for b1, b2, and b3, the R2, and the p-values for the t-tests for b1, b2 and b3. Using the proper equation explain why the signs of the OLS estimates of b1, b2, and b3 are in line with what the (extended version of the) Solow model predicts.
log (y85) - log (y60) = a + b1 log (y60). Report the OLS estimate for b1 and the p-value for the t-test. Is the OLS estimate for b1 statistically significant? Give an explanation for why that is the case.
log (y85) - log (y60) = a + b1 log (y60) + b2 log (sk) + b3 log (n + d + g) + b4 log (sh). Report the OLS estimate for b1 and the p-value for the t-test. What is the sign of the OLS estimate of b1? Give an explanation for why that is the case.
Attachment:- dataset_mrw.xlsx