Abstract
In this study, it was examined the linear mixed model approach in the penalized spline regression. For this purpose, the data for the year 2009 which is included in the “Turkey’s Top 500 Industrial Enterprises” study conducted by the Istanbul Chamber of Industry was used. The nonparametric relationship between labor productivity and return on assets of the enterprises was estimated by using penalized spline regression and linear mixed model approach in penalized spline regression. “nlme” package which is developed for linear mixed model in R was used. The mean square error of the model which was estimated by using linear mixed model approach is found smaller.
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