Question: In Section 8.12 we reported estimates from Mankiw, Romer and Weil (1992). We reported estimation both by unrestricted least squares and by constrained estimation, imposing

In Section 8.12 we reported estimates from Mankiw, Romer and Weil (1992). We reported estimation both by unrestricted least squares and by constrained estimation, imposing the constraint that three coefficients (2nd , 3rd and 4th coefficients) sum to zero as implied by the Solow growth theory.

Using the same dataset MRW1992 estimate the unrestricted model and test the hypothesis that the three coefficients sum to zero.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Econometrics Questions!