Three Irish sisters are thinking about emigrating in 1870. The options are going to the United States or Argentina, or staying in Ireland. They cannot agree where to go and split up. One stays in Ireland, one emigrates to the United States and one to Argentina. The following table provides information on real GDP per capita in 1870, 1913, and 1929 in Ireland, the United States and Argentina expressed in U.S. dollars of 1990, which we will use to analyze how each did. Real GDP per capita 1870 1913 1929 Ireland 1,775 2,736 2,824 United States 2,445 5,301 6,899 Argentina 1,311 3,797 4,367 (d) Suppose by 1913 each of the sisters has a daughter who is thinking about emigrating. The daughters forecast income in 1929 using the average growth rate observed between 1870 and 1913. Find the forecasted 1929 real GDP per capita level for each country
Three Irish sisters are thinking about emigrating in 1870. The options are going to the United States or Argentina, or staying in Ireland. They cannot agree where to go and split up. One stays in Ireland, one emigrates to the United States and one to Argentina. The following table provides information on real
|
Real GDP per capita |
|||
|
|
1870 |
1913 |
1929 |
|
Ireland |
1,775 |
2,736 |
2,824 |
|
United States |
2,445 |
5,301 |
6,899 |
|
Argentina |
1,311 |
3,797 |
4,367 |
(d) Suppose by 1913 each of the sisters has a daughter who is thinking about emigrating. The daughters
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