ABSTRACT
In some of the panels the locally weighted regression fit differs considerably from the linear fit, confirming in some respect our suspicion about the form of the relationship between some pairs of variables. The most predictive variables appear to be SPR, RGF, and CAR, although since the regression coefficients and their standard errors are estimated conditionally on the other variables such an interpretation needs to be made with caution. Removing one of the nonsignificant explanatory variables and reestimating the remaining coefficients might lead to a different picture.
