You have been asked to calculate TFP growth for four countries from 1985-2014: China, Hungary, South Korea, and Mexico. You decide to reach for the Solow growth model to do your calculations, specifically, the Cobb-Douglas production function:
. Using the data available in the table below, which shows the average labor share and growth rates of real GDP per capita, labor composition, and capital per capita from 1985-2014, find the TFP growth rate for each country. Given what you know about each country, what may explain your results?Table 6.3
(Source: Penn World Tables 9.0)

Question

You have been asked to calculate TFP growth for four countries from 1985-2014: China, Hungary, South Korea, and Mexico. You decide to reach for the Solow growth model to do your calculations, specifically, the Cobb-Douglas production function:  
. Using the data available in the table below, which shows the average labor share and growth rates of real GDP per capita, labor composition, and capital per capita from 1985-2014, find the TFP growth rate for each country. Given what you know about each country, what may explain your results?Table 6.3  
(Source: Penn World Tables 9.0)

Quizplus · Accepted Answer

The Answer of You have been asked to calculate TFP growth for four countries from 1985-2014: China, Hungary, South Korea, and Mexico. You decide to reach for the Solow growth model to do your calculations, specifically, the Cobb-Douglas production function:  
. Using the data available in the table below, which shows the average labor share and growth rates of real GDP per capita, labor composition, and capital per capita from 1985-2014, find the TFP growth rate for each country. Given what you know about each country, what may explain your results?Table 6.3  
(Source: Penn World Tables 9.0)

You Have Been Asked to Calculate TFP Growth for Four