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.
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.
Transcribed Image Text:Country
United States
Canada
France
Hong Kong
South Korea
Indonesia
Argentina
Mexico
Kenya
Ethiopia
In 2011 dollars
(1)
Capital
per person
175,075
153,390
136,004
154,766
(2)
Per capita
GDP
54,807
42,540
38,841
40,603
36,521
10,598
142,891
26,620
31,589 16,469
41,866 17,070
4,179
3,069
2,938
1,596
(3)
Capital
per person
1.000
Relative to the U.S. values (U.S. = 1)
(6)
(5)
Predicted
y*
Implied TFP
to match data
1.000
1.000
(4)
Per capita
GDP
1.000
Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video
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