Question: Create a new table that contains only the last three columns of the table in exercise 5. This time, instead of reporting the numbers relative
(a) Explain in general how to interpret these numbers and in particular how the three columns are related.
(b) In the chapter, we found that about one-fourth of the differences in per capita GDP across countries were due to differences in capital per person and about three-fourths were due to differences in TFP. Carry out this calculation for Kenya. The United States is 33 times richer than Kenya; what fraction of this factor of 33 is due to differences in capital per person and what fraction is due to differences in TFP?
(c) Repeat part (b) for Ethiopia.
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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
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