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Up to now we do not have too much theory behind, although that will change before this problem set is due, us so we can test interesting results on the data. Therefore, we will begin by working with relevant data to get a better understand of growth accounting. We will then test how well some of the prediction on our theories.
• In the first exercise we are going to construct a capital stock series which will be used in to preform a growth accounting exercise.
• In the second exercise you will preform a grown accounting exercise in a country of your choosing.
• In the third exercise you will explain what the Solow Growth Model predicts for a nation that looses some of it's capital stock.
• In the fourth exercise you will numerically solve the Solow Growth Model.
• In the fifth exercise you will continue working with a new version of the Solow Model which is defined in per-efficient worker.
Attachment:- MACRO_Question.zip
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