Real GDP per capita is 49,773 (measured in constant 2017 International Dollar, same for the following numbers) in the year 2019 for Canada, and 62,491 for the United States. Real capital stock per capita is 225,268 in the year 2019 for Canada and 209,866 for the United States. Decompose the differences in real GDP per capita between Canada and the United States into the contribution from productivity and that from capital accumulation. Explain using your results why real GDP per capita is lower in Canada than in the United States. You can use a capital share α of 1/3.
Real GDP per capita is 49,773 (measured in constant 2017 International Dollar, same for the following numbers) in the year 2019 for Canada, and 62,491 for the United States. Real capital stock per capita is 225,268 in the year 2019 for Canada and 209,866 for the United States. Decompose the differences in real GDP per capita between Canada and the United States into the contribution from productivity and that from capital accumulation. Explain using your results why real GDP per capita is lower in Canada than in the United States. You can use a capital share α of 1/3.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Real GDP per capita is 49,773 (measured in constant 2017 International Dollar, same for
the following numbers) in the year 2019 for Canada, and 62,491 for the United States. Real
capital stock per capita is 225,268 in the year 2019 for Canada and 209,866 for the United
States. Decompose the differences in real GDP per capita between Canada and the United
States into the contribution from productivity and that from capital accumulation. Explain
using your results why real GDP per capita is lower in Canada than in the United States.
You can use a capital share α of 1/3.
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