00:01
Hello, in this question i'll be explaining the following.
00:04
So we have the following information above, and we want to know how much would you attribute to each source.
00:12
If you use the growth accounting equation to divide output growth into three sources, capital labor and total factor productivity.
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So we're going to use the equation.
00:28
Let me just write out our equation, and i will explain what.
00:49
Goes into each of these letters so that we can properly solve this equation.
00:57
All right, so we know that our change of y over, our change of y over y is going to be our 3 .6 and our change of l over l is going to be 1 .8.
01:30
And our change of k over k is going to be our 3 .6.
01:39
And our alpha is going to be our 1 third, which is going to give us the capital share output.
01:52
So, y is represents the output.
01:57
The a represents the total factor of productivity.
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The k represents capital stock.
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Here, i'll write everything out, because it's going to be a lot.
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So i want you to be able to remember the equation.
02:11
So let's start over.
02:13
A represents the total factors of productivity.
02:18
Y is our output, or not just our y.
02:27
Let me move it down...