ECON 602 Assignment 2
Due Apr. 8th 2021
经济Assignment代写 This assignment requires that you reproduce the results in the Mankiw, Romer, and Weil (1992, Quarterly Journal of
Instruction: Please solve following questions step by step. Otherwise, your assignment will
be considered incomplete.
Question 1 经济Assignment代写
The Empirics of the Solow Growth Model
This assignment requires that you reproduce the results in the Mankiw, Romer, and Weil (1992, Quarterly Journal of Economics) paper, using the original data. Please report the parameter estiamtes with FOUR decimal places.
- Please estimate equation (7) of the Mankiw et al. (1992) paper.
Are the coefficients of ln(s) and ln(ν + τ + δ) statistically significant? Do they have the correct sign? Please test that these coefficients are equal in magnitude and opposite in sign.
Please estimate equation (7) with the imposed restrictions. According to these results, what is the share of capital in income? Is this result consistent with the generally accepted value?
- Please estimate equation (11) of the Mankiw et al. (1992) paper.
Are the coefficients for ln(s), ln(ν +τ +δ), and ln(school) statistically significant? Is the sum of these coefficients zero?
Please estimate equation (11) with the imposed restrictions. According to the results, what are the estimates for the capital and human capital share of income? Is the sum of the capital and human capital share of income less than one? If so, why is this important?
Are the results consistent with the generally accepted empirical results? Does the inclusion of a human capital proxy improve the performance of the Solow growth model?
- To investigate the robustness of the results, please update the data for the OECD countries only, and answer the questions in (1) and (2) again with the updated data and discuss the results. [Hint: You may want to check the Penn World Tables 10.0.]