Observation

1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987

Output
35.858
37.504
40.378
46.147
51.047
53.871
56.834
65.439
74.939
80.976
90.802
101.955
114.367
101.823
107.572
117.6
123.224
130.971
138.842
135.486
133.441
130.388
130.615
132.244
137.318
137.468
135.75

Capital
59.6
64.2
68.8
75.5
84.4
91.8
99.9
109.1
120.7
132
146.6
162.7
180.6
197.1
209.6
221.9
232.5
243.5
257.7
274.4
289.5
301.9
314.9
327.7
339.4
349.492
358.231

Labor
637
643.2
651
685.7
710.7
724.3
735.2
760.3
777.6
780.8
825.8
864.1
894.2
891.2
887.5
892.3
930.1
969.9
1006.9
1020.9
1017.1
1016.1
1008.1
985.1
977.1
1007.2
1000

lny
3.579567
3.624448
3.698285
3.831832
3.932747
3.986592
4.040135
4.181118
4.316674
4.394153
4.508681
4.624532
4.739413
4.623236
4.67816
4.767289
4.814004
4.874976
4.933337
4.908868
4.893659
4.870515
4.872254
4.884649
4.922299
4.923391
4.910815

lnk
4.087656
4.162003
4.231204
4.324133
4.435567
4.519612
4.60417
4.692265
4.793308
4.882802
4.987708
5.091908
5.196285
5.283711
5.345201
5.402227
5.44889
5.495117
5.551796
5.614587
5.668155
5.710096
5.752255
5.792099
5.827179
5.856481
5.881178

lnl
6.45677
6.466456
6.47851
6.53044
6.56625
6.585206
6.600143
6.633713
6.656212
6.660319
6.716353
6.761689
6.795929
6.792569
6.788409
6.793802
6.835292
6.877193
6.914632
6.92844
6.924711
6.923727
6.915823
6.892743
6.884589
6.914929
6.907755

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.985594
R Square 0.971395
Adjusted R 0.969011
Standard Er0.081229
Observatio
27
ANOVA
df
Regression
Residual
Total

SS
MS
F
Significance F
2 5.37754 2.68877 407.5017 3.00E-019
24 0.158356 0.006598
26 5.535896

Coefficients
Standard Error t Stat
P-value Lower 95%Upper 95%
Lower 95.0%
Intercept
-11.9366 3.211064 -3.717335 0.001073 -18.56391 -5.30929 -18.56391
lnk
0.13981 0.165391 0.84533 0.406276 -0.20154 0.481159 -0.20154
lnl
2.328402 0.59949 3.883972 0.000706 1.091116 3.565689 1.091116

RESIDUAL OUTPUT
Observation
Predicted lnyResiduals
1 3.668851 -0.089284
2 3.701798 -0.077351
3 3.73954 -0.041255
4 3.873447 -0.041615
5 3.972408 -0.039661
6 4.028293 -0.041701
7 4.074894 -0.03476
8 4.165377 0.015742
9 4.231891 0.084784
10 4.253965 0.140188
11
4.3991 0.109581
12 4.519229 0.105303
13 4.613548 0.125864
14 4.617947 0.005289
15 4.616857 0.061304
16 4.637388 0.129901
17 4.740517 0.073487
18 4.844542 0.030434
19 4.939639 -0.006302
20 4.980569
-0.0717
21 4.979375 -0.085716
22 4.982948 -0.112434
23 4.970438 -0.098184

24 4.92227 -0.037621
25 4.908189 0.014111
26 4.98293 -0.059539
27 4.969679 -0.058864

lnk Residual Plot

0.2
Residuals

0
3.5

4.5

5.5

6.5

-0.2
lnk

lnl Residual Plot

Upper 95.0%
-5.30929
0.481159
3.565689

0.2
Residuals

0
6.4

6.5

6.6

6.7

-0.2
lnl

6.8

6.9

lnY=-11.96+0.139lnK+2.33lnL
t stats:
Intercept
lnL
lnK
R Squared
Holding capital constant, a 1% increase in labor increases output, on average by about 2.33%

-3.71
0.84
3.88
97.14%