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a. Use the law of motion for the capital stock (Kt+1 = stYt + (1 )Kt) in order to obtain estimates of the saving rate
a. Use the law of motion for the capital stock (Kt+1 = stYt + (1)Kt) in order to obtain estimates of the saving rate in all years.
Assume the Production function is of the form Y = AK^a(HL)^1-a, that the depreciation rate is 6% per year, and that a = 0.3.
year | gdp | population | employment | capital(K) | education |
1975 | 1323576 | 926.24088 | 419.7919 | 1718109 | 1.594199 |
1976 | 1272721 | 942.68541 | 431.8582 | 1848966 | 1.623609 |
1977 | 1364091 | 957.89127 | 442.6376 | 1981555 | 1.653562 |
1978 | 1573644 | 972.20544 | 454.2029 | 2145750 | 1.684067 |
1979 | 1653973 | 986.1322 | 467.5601 | 2309319 | 1.713661 |
1980 | 1678408 | 1000.0892 | 484.6689 | 2499968 | 1.737436 |
1981 | 1690708 | 1014.0222 | 504.6518 | 2676162 | 1.759069 |
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