The table below reports per capita GDP and capital per person in the year 2014 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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Relative to the U.S. values (U.S. = 1) In 2011 dollars (1) Capital (2) Per capita GDP (3) Capital (5) Predicted (6) Implied TFP to match data (4) Per capita GDP Country y* per person per person United States 141,841 51,958 1.000 1.000 1.000 1.000 Canada 128,667 43,376 162,207 159,247 120,472 France 37,360 Hong Kong 45,095 South Korea 34,961 Indonesia 41,044 53,821 45,039 9,797 20,074 15,521 Argentina Mexico Kenya Ethiopia 4,686 2,971 1,505 3,227