> Consider the data in the table below: United States Switzerland Per capita GDP, 2017 1.000 1.151 Saving rate (%) 23.5 28.8 TFP (A) 1.000 1.052 Answer the following questions using the Solow growth model. 9. Assuming no differences in TFP (ignore the last column) and no differences in the rate of depreciation between the U.S. and Switzerland, use the data in the table to predict the ratio of per capita GDP of Switzerland relative to that of the U.S. in the steady states. How much percent richer is Switzerland than the U.S. in steady state? 10. Now do the same exercise assuming TFP is given by the levels in the last column. Now how much percent richer is Switzerland than the U.S. in steady state?

> Consider the data in the table below: United States Switzerland Per capita GDP, 2017 1.000 1.151 Saving rate (%) 23.5 28.8 TFP (A) 1.000 1.052 Answer the following questions using the Solow growth model. 9. Assuming no differences in TFP (ignore the last column) and no differences in the rate of depreciation between the U.S. and Switzerland, use the data in the table to predict the ratio of per capita GDP of Switzerland relative to that of the U.S. in the steady states. How much percent richer is Switzerland than the U.S. in steady state? 10. Now do the same exercise assuming TFP is given by the levels in the last column. Now how much percent richer is Switzerland than the U.S. in steady state?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

> Consider the data in the table below:
Per capita GDP, 2017
Saving rate (%)
TFP (Ā)
United States
1.000
23.5
1.000
Switzerland
1.151
28.8
1.052
Answer the following questions using the Solow growth model.
9. Assuming no differences in TFP (ignore the last column) and no differences in the
rate of depreciation between the U.S. and Switzerland, use the data in the table to
predict the ratio of per capita GDP of Switzerland relative to that of the U.S. in the
steady states. How much percent richer is Switzerland than the U.S. in steady state?
10. Now do the same exercise assuming TFP is given by the levels in the last column.
Now how much percent richer is Switzerland than the U.S. in steady state?
Consider the data in the table below: Per
сapita GDP, 2017

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