+1 862 207 3288 1. Explain in words and equations how growth how accounting works. Show how to calculate total factor productivity.
2. Conduct a growth accounting exercise for your country for the period 2001 to 2011. Assume α = 1/3
3. Calculate the contribution of physical capital, human capital, and total factor productivity as a percentage of average annual growth.
4. The variables you need come from the Penn World Tables posted on Moodle. Real GDP = rgdpo (millions of 2005 dollars), number of persons employed = emp (millions), capital stock = ck (millions of 2005 dollars), and the index of human capital per person = hc. Real GDP and the capital stock must be divided by employment so it is on a per worker basis. You must calculate the average annual growth rate for each variable for the 2001 to 2011 period (use the formula from chapter 1).
5. This paper has a two page limit (12 point, double spaced). That is, show everything in two pages.
