University of zimbabwe faculty of social studies department of economics

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APPENDIX 4: OLS Regression Results
Dependent Variable DLTOUT Method Least Squares Date 03/17/16 Time 14:06 Sample (adjusted 1982 2015 Included observations 34 after adjustments Variable Coefficient Std. Error t-Statistic Prob. C
1.929820 0.391252 4.932425 0.0000
DLTTOUT(-1)
-0.266044 0.138500
-1.920897 0.0658
LATG
0.265710 0.132437 2.006307 0.0553
LMP(-1)
-0.355482 0.079114
-4.493306 0.0001
LPT(-1)
0.117526 0.053751 2.186495 0.0380 SQ)
0.005561 0.163541 0.034003 0.9731 T
-0.033902 0.021402
-1.584023 0.1253 T 0.001246 0.000506 2.464107 0.0207 0
1 2
3 4
5 6
7 8
-0.3
-0.2
-0.1 0.0 0.1 0.2 Series Residuals
Sample 1982 Observations Mean
2.06e-16
Median Maximum
Minimum Std. Dev.
0.162709
Skewness
0.165686
Kurtosis
2.839206
Jarque-Bera
Probability 0.908378

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R-squared
0.553389 Mean dependent var 0.029803 Adjusted R-squared 0.533147 SD. dependent var
0.243471 SE. of regression
0.183308 Akaike info criterion -0.352969 Sum squared resid 0.873652 Schwarz criterion
0.006175 Log likelihood
14.00047 Hannan-Quinn criter. -0.230490
F-statistic
4.602312 Durbin-Watson stat
1.860619
Prob(F-statistic)
0.001858

APPENDIX 5: LONG-RUN ELASTICITY FORMULA (NERLOVE; 1958)

Where;
LRε = long-run price elasticity of supply
SR = short-run price elasticity of supply;

α = absolute coefficient of lagged output supplied Given the OLS regression results in APPENDIX 4;
SRε = 0.117526
α = 0.266044
Hence;

= 0.1601267650922

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