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Use the extended Penn world table (https://sites.google.com/a/newschool.edu/duncan-foley-homepage/home/EPWT). Answer the following questions with empirical results: a. Choose any 3 OECD countries and any 3 developing countries, present their respective growth rates of labor productivities and capital productivities for the entire period (might be different for each country). b. Illustrate two growth and distribution schedules on the same graph, one for an OECD country, one for a developing country. c. Recall the Cambridge equation. Can you find evidence for it in the data? Show it. d. Recall the neoclassical full employment condition (capital grows to absorb increases in population and labor productivity). Can you find evidence for it in the data? e. The classical theory argues that capital accumulation is driven by profit. Can you find such evidence in the data? 2. Take a look at NBER cycle (http://www.nber.org/cycles.html). How does NBER decide on the dates of a cycle? Do you agree, why or why not? And, try to find the historical data compiled by the Maddison project, can you find evidence of the long wave from USA or UK GDP growth rates?


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