Calculate the average growth rate

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Problem (Technological Progress by Sector)

The concept of Total Factor Productivity (TFP) in economic statistics corresponds to what we have called A in our lectures. Go to the website: https://www.bls.gov/mfp/mprdload.htm#Multifactor Productivity Tables (of the Bureau of Labor Statistics). Under the heading: "1987-2014 Manufacturing Multifactor Productivity", find and download the Excel file "Manufacturing Sector and NIPA-level Manufacturing Industries KLEMS Multifactor Productivity Tables by Industry".

(a) Choose any 5 industries for the period 1987-2014 and plot the corresponding series of TFP.

(b) Calculate the average growth rate. (Hint: use the formula for the implied growth rate from the lecture notes). Which industry has shown the greatest "technological improvement" over the period? Which one has shown the least?

Reference no: EM131271565

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