Question: How can you compute total factor productivity growth using observable statistics? Take a growth rate of 6%, a growth rate of labor of 3%, a

How can you compute total factor productivity growth using observable statistics? Take a growth rate of 6%, a growth rate of labor of 3%, a growth rate of capital of 8%, and a share of capital of 40%. Calculate total factor productivity growth. You can go to the Penn World Tables to do a similar exercise for a country of your choice. However, you will not find series for the stock of capital and you will have to make an assumption for the growth of capital. Can you use the available series in the Penn World Tables to estimate the growth of the capital stock? Justify your answer.

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