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Table 5

Hypothesis tests for the regressional model (Y1er, Y2er, and Y3er) and significance of non-random variation.

Tests Y1er
Y2er
Y3er
 
  s = 0.1 s = 0.2 s = 0.1 s = 0.2 s = 0.1 s = 0.2
*(H0: CD vs H1: TL) (CD) (CD) (TL) (TL) (CD) (CD)
LR statistic 13.22 14.50 18.96 41.48 –49.10 7.20
**(H0: γ = 0 vs H1: γ > 0) Significant Significant Significant Significant Significant Significant
LR statistic 153.1 184.32 53.63 105.40 83.03 156.44

*At the 5% level, (H0: CD vs H1: TL) test has χc2=χ102 = 18.31 and (H0: γ = 0 vs H1: γ > 0) has χc2=χ12(10%)=2.71.

**TL (TransLog): Quadratic model, and CD (Cobb-Douglas): Linear model.

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