Using this data:

China:

rgdpna-14,918,415

emp-784.71

hc-2.48

rkna-0.65

Brazil:

rgdpna- 2,976,570

emp-88.63

hc-2.56

rkna- 0.89

Canada:

rgdpna- 1,600,747

emp-17.59

hc-3.66

rkna-0.87

Germany:

rgdpna-3,860,487

emp- 41.22

hc- 3.66

rkna- 0.93

France:

rgdpna- 2,694,574

emp- 27.1

hc- 3.08

rkna- 0.92

USA:

rgdpna- 17,061,950

emp- 142.15

hc- 3.71

rkna- 0.89

(a) Assuming that= 1/3 and using our standard per worker production function:

y= Ak^1/3h^2/3

calculate the TFP of each country relative to the US TFP for 2015.

(b) Divide your sample into 5 groups based onyin 2015. Discuss the role of TFP vs Factors of Production in explaining differences in y for the, i.e. compare theA/AUSAand (k^1/3h^2/3)/(k^1/3_USAh^2/3_USA) in the top group vs the bottom group

(c) Next, undertake a growth accounting exercise. Calculate the growth rate ofy,A, andx(=k^1/3h^2/3). Discuss the distribution in the growth ofAandx.

2. Consider the following production function that is already written in per worker terms:

y=Akh¹

wherehrepresents human capital per worker. Suppose we are given the following information: capital per worker in an economy has been growing at 1% per year, human capital per worker has been growing at 5% per year, and output per worker has been increasing at 1% per year. What is the rate of productivity growth? Assume that= 1/3.

3. Consider the following two production functions:

Y=AKL¹andY=AK

Define the growth rate ofgAA/A

Calculate productivity growth for each of the production functions. As- suming 0< <1, compare the TFP growth rates predicted by the two functions.

4. (Chapter 8, Q4) Consider the one-country model of technology and growth that was presented in Section 8.3. Suppose thatL= 1,= 5, andA= 0.25. (These numbers are not meant to be realistic but rather are chosen to make the calculations easier. There has certainly never been a country where quarter of the labor force was engaged in R&D!) Calculate the growth rate of output per worker. Now suppose thatAis raised to 0.5. How many years will it take before output per worker returns to the level it would have reached ifAhad remained constant? (Note: You can solve this problem by using a calculator or computer or by applying some of the tricks for working with growth rates discussed in Chapter 1.)