How do you calculate productivity using regression? - Answers

To calculate productivity using regression, you typically model the relationship between outputs (e.g., goods produced) and inputs (e.g., labor hours, capital, materials) using a regression equation. The output can be considered the dependent variable, while the inputs are independent variables. By estimating the coefficients through regression analysis, you can assess how changes in inputs impact productivity levels. The productivity can then be quantified as the ratio of total output to total input, often expressed in terms of output per input unit (e.g., units produced per labor hour).