Estimating elasticity

Problem

Use labor2 data with y = output, x2 = labor, x3 = capital (do not use wage).

1. Use Eviews to estimate the elasticity of output with respect to labor and capital
2. According to your estimates, does the technology display increasing, constant or decreasing return to scale
3. Test the null hypothesis that technology display constant return to scale at \(α=0.05\) .