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According to the growth accounting equation, = + +(1- ) h where, h, are growth rates of GDP per capita, capital per worker, and human capital per worker, and α is the share of capital income in total GDP. The first four columns of the following table give values for , , h
Fill in the fifth column of the table with the growth attributed to physical.
Fill in the sixth column of the Table with human capital accumulation.
Fill in the seventh column of the Table with TFP growth.
Fill in the final column of the table by calculating the fraction of overall growth (gy) that is attributed to TFP by the growth accounting framework.
Using your calculations above discuss the potential for inaccurate estimates of gh and α to render misleading estimates of the importance of TFP growth.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
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