Sample Period 1963 to 1989, heteroscedasticity-consistent standard-errors in parentheses. Dependent Variable is the change in log Total Factor Productivity. Theta is the productivity gap. R&D/K is the ratio of the stock of R&D capital to the physical capital stock. ATC is the ratio of non-production workers to total workers. All equations include industry fixed effects, industry utilisation terms, industry bias terms and year dummies. Estimation is by OLS (Ordinary Least Squares).
AR 2(2) LM test for 1st and 2nd order serial correlation, Breusch-Pagan (1980).
HS F-test for heteroscedasticity, White (1980).
RESET F(j,T-j-K) F-version of the RESET test for j powers, Ramsey (1969).