The table below reports per capita GDP and capital per person in the year 2010 for 10 countries. Your task is to fill in the missing columns of the table.
(a) Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capita GDP and capital per person relative to the U.S. values.
(b) In column 5, use the production model (with a capital exponent of 1/3) to compute predicted per capita GDP for each country relative to the United States, assuming there are no TFP differences.
(c) In column 6, compute the level of TFP for each country that is needed to match up the model and the data.
(d) Comment on the general results you find.

Transcribed Image Text:

In 2005 dollars Relative to the U.S. values (U.S. 1) Capital per Per capita Capital per Per capita Predicted Implied TFF person GDP yto match data United States 124,162 41,365 1.000 1.000 1.000 .000 110,132 37,10 France Hong Kong 136,360 00,668 31299 38,685 South Korea 01,506 26.609 3,966 Indonesia 9,137 Argentina Mexico Kenya 29.39012.340 35,887 1939 1.247 2,125