plugin-growth-accounting-problems

plugin-growth-accounting-problems - Ecn 110B World Economic...

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Ecn 110B - World Economic History University of California - Davis October 9, 2009 John Parman Growth Accounting Problems This is a set of problems to give you practice working with the various growth accounting equations. You can safely assume that the growth rate of land is always zero unless a problem states otherwise. Solutions will be posted on Smartsite later this weekend. 1. Suppose that the shares of capital, labor and land in output are .6, .35 and .05 respec- tively. The current growth rate of the capital stock is 6 percent a year, the current population growth rate is 4 percent a year and the current growth rate of output is 8 percent a year. (a) What is the current growth rate of output per worker? (b) What is the current growth rate of technology? (c) What fraction of the growth in output per worker is explained by growth in technology? What fraction is explained by growth in capital per worker? (d) Suppose that the government provides incentives to keep family sizes small. As a result, the population growth rate declines to 2 percent a year. How does this
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