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From this equation, we see that capital per worker growth (or CPWG for short) is
equal to K/K N/N. Thus to calculate the respective countrys capital per worker
growth at different time periods, we only need to plug the values from the table into
the above formula, since the values are growth rates and not absolute values.
Firstly, for USA,
= 3.27% - 1.45%
= 1.82%
= 3.23%-0.98%
= 2.25%
= 9.18% - 1.15%
= 8.03%
2.
= 6.47% - 0.61%
= 5.86%
One thing no note is that our team did not multiply each final value we get by
alpha, as it only represents how much CPWG contributes to 1% growth in labor
productivity growth. With that, Ill pass the time to Clement to continue. Thankyou!