Assignment is based on:
A CONTRIBUTION TO THE EMPIRICS OF ECONOMIC GROWTH*
N. GREGORY MANKIW
DAVID ROMER
DAVID N. WEIL
DUE DATE: NOVEMBER 24
Instructions:
 Written in Words with required equations.
 Submit on Black board
 Everyone gets the same assignment and questions.
 Work on own assignment. Do not share or consult classmates except you closely work with group partner
 If assignment is copied from or helped each other in copying both assignments will be heavily penalized.
 If there is any questions – I will hold Zoom sessions to clarify
 Its value is 20% ( as we all agreed by changing midterm weight to 10%)
 No external resources are required to write assignment answers but the attached article

Summarize the paper for the following questions:
A. Use abstract and introduction to describe the statement of problem (i.e. objective of the paper)
in the paper i.e. why authors have chosen the topic to investigate as research question.
B. Why and how human capital is included an additional factor of economic growth?
C. Authors cite that “recent trend among economists to dismiss the Solow growth model in favor
of endogenous-growth models that assume constant or increasing returns to scale in capital”.
Evaluate the statement reflecting the discussion in the paper.
D. Discuss how authors argued the convergence i.e. long-run steady state predicted by Solow
model versus empirical evidence. State the predicted variables.
E. Summarize the “The text book Solow model” with major equations, assumptions and
specification of model.
F. Discuss the data collection, description of all variables.
G. Discuss if authors used Technology as exogenous or endogenous variable. What empirical
evidence you find from estimated results that technology growth does not vary across countries.
H. endogenous growth theory suggests that countries with higher levels of education (human
capital) might provide greater incentives for invention and, therefore, much higher rates of
growth. But holding human capital constant, endogenous growth theory may also predict
convergence. What evidence do you find in the article in favor of endogenous growth theory i.e.
endogeneity of human capital.
I. Does inclusion of human capital improves ability to explain the income differences across
countries. Discuss using results of the paper.
J. “an augmented Solow model that includes accumulation of human as well as physical capital
provides an excellent description of the cross-country data” Reflect from this article.
K. model. Both models have some explanatory power, in the sense that rates of human capital
formation (Uzawa-Lucas) and of physical capital accumulation (the AK model) both appear to
be strongly related to output growth in the long run. However, neither model is a complete
description of the cross-country data; in particular, the over-identifying restrictions imposed by
each model are decisively rejected.

L. Discuss the major results of OLS estimated regressions.
M. Discuss the rational of inclusion human capital in the growth model.
N. Summarize the major equations, assumptions and specification of model.
O. Discuss the data and sample, description of all variables.
P. Discuss the major results of estimated regressions.


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