If you have data on per capita GDP and capital per worker, to find total factor productivity you can use the equation
, 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  
, if capital's share of GDP is one-third.

Quizplus · Accepted Answer

The given equation is the Solow Residual, which represents total factor productivity. If capital's share of GDP is one-third, then the coefficient on capital per worker in the equation is 2/3, and the residual represents the contribution of total factor productivity.

If You Have Data on Per Capita GDP and Capital