Dependent Variable: Δ Capital-Labour Ratio

Dependent Variable: Δ VA-Labour Ratio

All Firms

10 - 90 percentile Firms

20 - 80 percentile Firms

All Firms

10 - 90 percentile Firms

20 - 80 percentile Firms

Explanatory Variables

Coefficient

(S.E.)

Coefficient

(S.E.)

Coefficient

(S.E.)

Coefficient

(S.E.)

Coefficient

(S.E.)

Coefficient

(S.E.)

Capital-Labour ratio at period t − 1

−0.63***

(0.07)

−0.63***

(0.05)

−0.69***

(0.05)

Value added per labour ratio at period t − 1

−0.54***

(0.06)

−0.61***

(0.05)

−0.69***

(0.11)

Model Properties

Number of observations

1120

1120

1120

1120

1120

1120

R-squared

0.42

0.40

0.42

0.33

0.36

0.40

Root MSE

0.29

0.30

0.36

0.21

0.20

0.22