Universidad Carlos III de Madrid

Crecimiento econ
omico, curso 2015-16
Economic growth, year 2015-16
Tarea 1 / Homework 1
Fecha de entrega: 15 de septiembre
Due September 18th

Problem 1. The table below shows the national accounts of Perejil Island. It is closed economy
and public expenditures are zero. Answer the following questions:
1. How much is Gross Domestic Product?
2. Calculate the value of Gross National Product and Net National Product?
3. How much are the rents that remunerate capital?
Expenditures
Investment
Consumption

Factor rents
Depreciation
National Income
Salaries
Capital rents

0.25
0.75

0.20
0.80
0.72
?

Problem 2. The table below shows the national accounts of Perejil Island after opening to international trade and after establishing a government. Calculate the amount of GDP, GNP, NNP and
National Income.
Expenditures
Private consumption
Government expenditures
Gross Investment
Exports
Imports

69.30
18.43
15.73
10.26
13.72

Factor Rents
Net transfers from the rest of the world
Depreciation
Indirect taxes
Salaries
Capital rents

00.21
13.18
06.47
58.27
22.29

Problem 3. The table below specifies the compensation to each production factor. Assume that
36 percent of the income of self employed can be attributed to labor. How much are the aggregate
capital rents in this economy?

The following question require access to Internet and Excel. Go to the web page http://www.rug.nl/research/ggd
and click in the link PWT 8.1, then in the new page click in RGDe , the variable that denotes
Expenditure-side real GDP at chained PPPs, to compare relative living standards across countries
and over time. You will find an interactive page where you can download the data. Click in the
link RGDe , and a table with date will show up. Download the data in Excel form. You will see two
1

National Income
Salaries
Self employed income
Personal capital income
Profits
Net interest

58.27
07.22
01.37
07.26
06.45

variables: Expenditure-side real GDP at chained PPPs (in mil. 2005US$) and Population (in
millions).
Problem 4. Convergence in Spain.
1. Plot the variable rgdpl (per capita GDP) for the period available for Spain.
(a) Describe briefly the trend of the Spanish (real) GDP per capita for the period 1950-2011.
(b) Compare per capita GDP in the periods 1950-74, 1975-1986, 1986-. Can we say anything
about the behavior of aggregate productivity?
(c) Do not forget to include the graphics in your answers.
2. Now retrieve the same data for France.
(a) How much was the (real) GDP per capita in Spain relative to GDP per worker in France
in 1950?
(b) An in the year 2011?.
(c) Obtain the average growth rate of real GDP per worker for both countries in the period
1950-2010.
(d) If the growth rate of real GDP per worker were constant and equal to the value previously
calculated, how long would it take for Spain to attain a level of real GDP per worker
twice its level in the year 2004?
(e) If Spain and France grow at the average rates of the period 1950-2004 how many years,
starting in 2000, would it take for both countries to have the same level of real GDP per
worker?