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Hello! Can you please help me with my task? Thank you! https://xplaind.com/432223/growth-accounting https://www.investopedia.com/terms/s/solow-residual.asp#:~:text=The%20Solow%20residual%20is%20the,labor%2C%20the%20factors%20of%20production.&text=As%20such%2C%20the%20Solow%20residual,growth%20due%20to%20technological%20innovation. Here we are with data for an empirical application of the growth
Hello! Can you please help me with my task? Thank you! https://xplaind.com/432223/growth-accounting https://www.investopedia.com/terms/s/solow-residual.asp#:~:text=The%20Solow%20residual%20is%20the,labor%2C%20the%20factors%20of%20production.&text=As%20such%2C%20the%20Solow%20residual,growth%20due%20to%20technological%20innovation.
Here we are with data for an empirical application of the growth accounting approach (see section 1.7 at pag. 160 of textbook). Assume that the production function is the standard expression Y(t) = F(K(t), A(t), L(t)) and ax=1/3 is the elasticity of output with respect to capital. The following table provides data on the annual growth rates (in % points) for the year 1990 in the case of Italy, South Korea and India. Gy - growth rate GL - growth rate Gk - growth rate of output of employment of physical capital stock Y ([ ) L(t ) K ([ ) Y (I ) L(t ) K (t ) Italy 2.1 0.6 3.7 South Korea 9.0 0.9 15.0 India 5.4 2.4 7.6 Note: data in % points. QUESTIONS (show all calculations made) a) For each country, you have to calculate the so-called "Solow residual" R(t) (the measure of the contribution of technological progress). b) In which country does the "Solow residual" account for the largest share of the growth rate of output per worker? And in which country the same share is the smallestStep by Step Solution
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