library(fredr) library(dplyr) library(tis) library(dygraphs) ``` Nicholas kaldor explores determinants of long-run economic growth among developed economies. He coins the term "stylized facts" to describe certain characteristics the are evidently true. Below are all six stylized facts as well as a brief graphic and non-technical examination of the data. *** ## Fact 1 Output/worker growth is constant ```{r, fig.align='center'} rgdp <- fredr_series_observations(series_id = "gdpc1") workers <- fredr_series_observations(series_id = "payems", frequency = "q", observation_start = as.Date("1947-01-01"), observation_end = as.Date("2021-07-01")) yw <- ts(rgdp$value/workers$value, start = c(1947, 1), frequency = 4) yw_growth <- growth.rate(yw, lag = 1, simple = T) %>% ts(start = c(1947, 2), frequency = 4) dygraph(yw_growth, xlab = "", ylab = "Percent", main = "U.S. Growth Rate Output per Worker") mean(yw_growth) mean(window(yw_growth, end = c(1980,1))) mean(window(yw_growth, end = c(2000,1))) mean(window(yw_growth, start = c(1970,1), end = c(2000,1))) mean(window(yw_growth, start = c(1970,1))) ``` ## Fact 2 Capital per worker grows over time ```{r, fig.align='center'} cap <- fredr_series_observations(series_id = "rknanpusa666nrug") workers <- fredr_series_observations(series_id = "payems", frequency = "a", observation_start = as.Date("1950-01-01"), observation_end = as.Date("2019-01-01")) ts(cap$value/workers$value, start = 1950) %>% dygraph(xlab = "", ylab = "Capital Stock/Worker") ``` ## Fact 3 Capital to Output ratio is roughly constant ```{r, fig.align='center'} rgdp <- fredr_series_observations(series_id = "gdpc1", frequency = "a", observation_start = as.Date("1950-01-01"), observation_end = as.Date("2019-01-01")) ts(cap$value/rgdp$value, start = 1950) %>% dygraph(xlab = "", ylab = "Capital Stock/Output") ``` *** # I need help finishing Fact 4, 5 and 6. Using data to make a conclusion about whether the fact holds 'true'. There is more than one answer per fact depending on the data used. ## Fact 4 Rate of return on capital is constant. ## Fact 5 Share of capital and labor in net income is constant. ## Fact 6 Real wages grow over time. fyi: the code being used is R