The table attached 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.
The table attached 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.
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The empirical fit of the production model:
(The empirical fit of the production model) NOTE: only work on Canada, France, Mexico, Kenya, and Ethiopia (5 countries)
(d) Comment on the general results you find.
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