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5. The empirical fit of the production model: The table below reports per capita GDP and capital per person in the year 2017 for 10
5. The empirical fit of the production model: The table below reports per capita GDP and capital per person in the year 2017 for 10 countries. Your task is to ll in the missing columns of the table. (a) Given the values in columns 1 and 2, ll in columns 3 and 4. That is, compute per capita GDP and capital per person relative to the US. values. (b) In column 5, use the production model (with a capital exponent of 1f3) to compute predicted per capita GDP for each country relative to the United States, assuming there are no TFP dierences. (C) In column 6, compute the level of TFP for each country that is needed to match up the model and the data. ((1) Comment on the general results you nd. In 2011 dollars Relative to the U.: (1) (2) (3) (4) Capital Per Capital Per per capita per capita Country person GDP person GDP United States 175,075 54,807 1.000 1.000 Canada 153,390 42,540 France 136,004 38,841 Hong Kong 154,766 40,603 South Korea 142,891 36,521 Indonesia 26,620 10,598 Argentina 31,589 16,469 Mexico 41,866 17,070 Kenya 4,179 3,069 Ethiopia 2,938 1,596
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