Now suppose that each country i has a CobbDouglas production function of the form Ya = A1: K313 Lit/3 where Y}, denotes real GDP, Kit
Now suppose that each country i has a CobbDouglas production function of the form Ya = A1: K313 Lit/3 where Y}, denotes real GDP, Kit denotes capital, and L\" denotes the number of employed workers in country i on date t. Note that each country has the same share parameter or = 1/3 but they have different levels of total factor productivity (TFP) denoted Ait. Using this assumption, calculate and report the average annual growth rate of TFP over the whole sample and over each decade (1950s, 1960s, . . ., 2010s) 7 again, subject to data availability for each country. Now suppose that the production function is instead 1 3 Yit = Ait Kit/ (HitLit)2/3 where Hit denotes average hours per worker, i.e., here the measure of labour input is total hours, not total employment. How if at all does this change your conclusions about TFP growth
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