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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?
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