Total Factor Productivity In this section, we'll enrich our study of income levels across countries. Here, we'll get acquainted with croacountry data that the Solow Growth model can speak to. You should look at the US and one (any) other country. 1. Using the Penn World Tables download the series for GDP, Labor and capital stock. For GDP and capital stock, use \"constant 2017 national prices,\"1 and for labor use \"persons engaged.\" 2. Plot the difference in natural log for each of these over time, i.e. log 2H1 log.rt for :r = Y, L, K 3. Using a capital share of income, Er, of g, or in PW'I' you can use \"Share of labor compensation in GDIP'1 for 1 o: to compute: . Share of growth from capital growth: aw - Share ofgrowth from labor growth: (1 MW a Share of growth in the residual, which is often called \"Total Factor Productivity\" or the \"Solor Residual\"1 or just, technology growth: 1 _abgK, lIDgK, _ (1 _)lcgr, 1th, menu-1051': IDSYI+1_h-Syt in each period. 1|What is the average contribution of each component? 4. Let's think about why this \"technology\" growth you have found is the same as the one in the textbook. Take laboraugmenting technology E in that familiar production function K=KhF and another production function that corresponds to the exercise we just did: a=amwmw 1 1What is the functional relationship between E; and At, that is can you write At in terms of E: and parameters? Rom above, where you have the growth in At, what is the growth rate of Et? Source: https : erbpw-t . webhusting. rug. nlanme