Exercise 2.1 Production Model
Assume that production Yt is given as a function of TFP A, labor Lt and capital Kt by:
Yt = AKt1/3 Lt2/3
1. Express output per capita yt = Yt/Lt, as a function of A and kt = Kt/Lt.
Download the data from the Penn World Tables, Version 8.1: http://www.rug.
nl/research/ggdc/data/pwt/pwt-8.1. Under "Expert Data Access", click on
"Excel format". Then import this Excel Workbook pwt81.xlsx into Google Sheets
directly, or just copy paste all cells from sheet "Data" to a new blank sheet in Google
Sheets. (it may take a while, given the size of the dataset) Use the "Filter" option
on Google Sheets to keep the data only for year 2009. Then Copy and paste on a
new Sheet the following series: rgdpo, rkna, pop. Use Sheet "Legend" in Workbook
pwt81.xlsx to see what this data corresponds to. Then do the following:
2. Draw a map of real capital/capita stock across countries (using constant 2005$).
To do that, select your two data columns (one with country names, the other with
capital/capita stocks that you will have created computing rkna/pop) and click on
the "Insert chart" icon. Choose, in "Chart types", the first Map option. You can
change the colors if you do not find them particularly informative. (with "advanced
edit option")
3. Use the same method to draw a map of real output/capita (given by rgdpo/pop).
Exercise 2.1 Production Model
Assume that production Yt is given as a function of TFP A, labor Lt and capital Kt by:
Yt = AKt1/3 Lt2/3
1. Express output per capita yt = Yt/Lt, as a function of A and kt = Kt/Lt.
Download the data from the Penn World Tables, Version 8.1: http://www.rug.
nl/research/ggdc/data/pwt/pwt-8.1. Under "Expert Data Access", click on
"Excel format". Then import this Excel Workbook pwt81.xlsx into Google Sheets
directly, or just copy paste all cells from sheet "Data" to a new blank sheet in Google
Sheets. (it may take a while, given the size of the dataset) Use the "Filter" option
on Google Sheets to keep the data only for year 2009. Then Copy and paste on a
new Sheet the following series: rgdpo, rkna, pop. Use Sheet "Legend" in Workbook
pwt81.xlsx to see what this data corresponds to. Then do the following:
2. Draw a map of real capital/capita stock across countries (using constant 2005$).
To do that, select your two data columns (one with country names, the other with
capital/capita stocks that you will have created computing rkna/pop) and click on
the "Insert chart" icon. Choose, in "Chart types", the first Map option. You can
change the colors if you do not find them particularly informative. (with "advanced
edit option")
3. Use the same method to draw a map of real output/capita (given by rgdpo/pop).
