From 1990 to 2004, the Celtic Tiger, Ireland, experienced annual growth in RGDP of 6.4% while the capital stock grew at 4.8% per year and employment grew at 2% annually. Labor’s share of Income was 60%.
a) What was the growth rate of Total Factor Productivity?
b) What were the relative contributions of productivity, the capital stock and employment to the growth rate of RGDP?