Question

Consider the following statistics for some economies. Assume the exponent on capital 1/3 and that labour composition is unchanged. For each economy compute the growth rate of TFP

a) A European Economy: The growth rate of output=0.03, Contribution from the growth of capital per hour worked by labour force=.03

b) A Latin American Economy: The growth rate of output=0.02, Contribution from the growth of capital per hour worked by labour force=0.01

C) An Asian Economy: The growth rate of output=0.06, Contribution from the growth of capital per hour worked by labour force=0.15