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In the December, 1969, American Economic Review (pp. 886–896), Nathaniel Leaf reports the following least squares regression results for a cross section study of the effect of age composition on savings in 74 countries in 1964: ln S/Y = 7.3439 + 0.1596 ln Y/N + 0.0254 ln G − 1.3520 ln D1 − 0.3990 ln D2 ln S/N = 8.7851 + 1.1486 ln Y/N + 0.0265 ln G− 1.3438 ln D1 − 0.3966 ln D2 where S/Y = domestic savings ratio, S/N = per capita savings, Y/N = per capita income, D1 =percentage of the population under 15, D2 =percentage of the population over 64, and G = growth rate of per capita income. Are these results correct? Explain. |
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