Question: In this exercise, assume ai = 1/ 3. Answer the following questions using the Solow model without population growth. a) (10 points) First, assuming no


In this exercise, assume ai = 1/ 3. Answer the following questions using the Solow model without population growth. a) (10 points) First, assuming no differences in TFP. Assume that countries are in steady state. Following the Solow model, use the data in the table to predict the ratio of capital per capita in Argentina relative to that in the US . (assume AA'renti'na = ABS) CAPITAL per Saving rate Depreciation predicted Egg/km\" capita, 2014 S,- 5;- (Relative to US) dollars 141,841 53,320 where E55,,- denotes the CAPITAL per capita in STEADY STATE predicted by the Solow model at' 3'! in country 1 b) (10 points) Now, imagine that we obtained data on TFP, shown in the following table. Using this data in TFP, compute the steady state CAPITAL implied by the Solow model. Model (using data on A\" s" 6- -} -_ predICted RSS I 2000 moo c) (10 points) Finally, imagine that you trust perfectly the data shown in this exercise m that you believe in the Solow model. Why would you say the predicted capital per capita from palt (b) is not the same as the observed one? Do you think these countries will grow in the following periods
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