Regression, Econometrics

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You have collected data for 104 countries to address the difficult questions of the determinants for differences in the standard of living among the countries of the world. You recall from your macroeconomics lectures that the neoclassical growth model suggests that output per worker (per capita income) levels are determined by, among others, the saving rate and population growth rate. To test the predictions of this growth model, you run the following regression: RelPersInc = 0.339- 12.894 x n + 1.397 x Sk, R^2= 0.621, SER= 0.177

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