5. The empirical fit of the production model: The table below reports per capita GDP and capital per person in the year 2017 for 10 countries. Your task is to fill in the missing columns of the table. (a) Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capita GDP and capital per person relative to the U.S. values. (b) In column 5, use the production model (with a capital exponent of 1/3) to compute predicted per capita GDP for each country relative to the United States, assuming there are no TFP differences. (c) In column 6, compute the level of TFP for each country that is needed to match up the model and the data. (d) Comment on the general results you find.

5. The empirical fit of the production model: The table below reports per capita GDP and capital per person in the year 2017 for 10 countries. Your task is to fill in the missing columns of the table. (a) Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capita GDP and capital per person relative to the U.S. values. (b) In column 5, use the production model (with a capital exponent of 1/3) to compute predicted per capita GDP for each country relative to the United States, assuming there are no TFP differences. (c) In column 6, compute the level of TFP for each country that is needed to match up the model and the data. (d) Comment on the general results you find.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer all the questions below with a detailed and 100% correct solution.
Which of the graphs (if any) show a surprising or seemingly incorrect relationship based on what you know about conditional convergence and the Solow model?