According to GLS’s discussion of productivity accounting results, what’s the most important driver of GDP per capita differences across countries?  Cross-country differences in…

Which is surely true in the Augmented Solow Model’s steady state? 

If two theories both fit the same set of stylized facts, then those theories are observationally equivalent.  

Labor’s share of GDP in the U.S.

In the Solow model, faster productivity growth (e.g., higher z) tends to raise the steady-state rental rate of capital. 

Dietz’s read of the evidence in Fully Grown is that increased market power explains about half of the growth slowdown. 

Nation W has the same steady-state capital-output ratio as the modern United States. In Nation W, the savings rate is 15%, the annual depreciation rate is 1%, and productivity never grows (z=0%). What ‘s the annual population growth rate in Nation W?

In a Solow model with competitive markets, what is alpha (α)?

If capital can move easily across countries in search of the highest rate of return, then a higher tax rate on capital tends to reduce equilibrium worker wages. 

Consider a Baby Solow economy where TFP = 1, capital starts off at K0=1, the savings rate is 50%, and the annual depreciation rate of capital is 10%. What is the steady-state capital stock?