Introduction of Econometrics
Empirical Project: Semester One 2022
Due date: Tuesday, 14 June 2022, 11:55 pm.
Submission: PDF Electronic submission via Canvas.
Marks: Total of 40 marks contributing 40% towards the final grade.
|i.||You must paste regression estimation outputs from R-studio under each question and R-code
if explicitly asked.
A brief review of production functions and an explanation of the variables used in Task 2 are
provided in the Appendix. This is not an exhaustive review, so if you have questions related
to that topic, please consult any textbook on Microeconomics.
Task:1 (18 marks)
This task tests your understanding of the data generating process in the context of regression models.
1. Consider a Cobb-Douglas production function with three logged1 inputs