If you have data on per capita GDP and capital per worker, to find total factor productivity you can use the equation $\bar { A } = y / k ^ { 1 / 3 }$
, if capital's share of GDP is one-third.

Question

If you have data on per capita GDP and capital per worker, to find total factor productivity you can use the equation $\bar { A } = y / k ^ { 1 / 3 }$ 
, if capital's share of GDP is one-third.

Quizplus · Accepted Answer

The equation $\bar { A } = y / k ^ { 1 / 3 }$ is derived from the Cobb-Douglas production function, where capital's share of GDP is one-third, allowing us to solve for total factor productivity (TFP) given per capita GDP (y) and capital per worker (k).

If You Have Data on Per Capita GDP and Capital Aˉ=y/k1/3\bar { A } = y / k ^ { 1 / 3 }Aˉ=y/k1/3

If You Have Data on Per Capita GDP and Capital $\bar { A } = y / k ^ { 1 / 3 }$