Question

1. Assuming Cobb-Douglass production function, using OLS method estimate the total factor productivity for the Industry sector over the above stated period. Supplement your findings with graphs and explanations for the changes that you observe over the years. Clearly show the result of your OLS estimation. ​

Answer 1

TFP is calculated by dividing output by the weighted average of labour and capital input, with the standard weighting of 0.7 for labour and 0.3 for capital. Total factor productivity is a measure of economic efficiency and accounts for part of the differences in cross-country per-capita income.

I hope it's help you please like and vote this question and mark on brain list.......