According to the growth accounting equation, = + + (1 )? where , , are growth rates of GDP per capita, capital per worker, and human capital per worker, and is the share of capital income in total GDP. The first four columns of the following table give values for, ,

gy: 5,2 ; 5,2 ; 5,2

gk: 4.0 ; 4.0 ; 4.0

gh: 2.0 ; 3,0 ; 2.0

: 0.3; 0.3 ; 0.4

1 What is the growth attributed to physical capital?

Q.3.2 What is the growth attributed to human capital accumulation.

Q.3.3 What is the TFP growth.

Q.3.4 Calculate the fraction of overall growth (gy) that is attributed to TFP by the growth accounting framework.

Q.3.5 Using your calculations above discuss the potential for inaccurate estimates of gh and to render misleading estimates of the importance of TFP growth.