TPI blog on the Penn World Table
|Date:||18 July 2023|
The Productivity Institute recently published a new blog introducing the Penn World Table (PWT). Authored by Ryan Marapin, Robert Inklaar and Reitze Gouma, this blog showcases two example analyses that illustrate the potential of the PWT data set, along with background information on the origins of the PWT data set, and its main distinguishing characteristics.
The blog presents a development accounting exercise for the year 2017, which breaks down the labour productivity level of each country, relative to the United States, by analyzing the contributions of (produced) capital per unit of output, human capital, and total factor productivity (TFP).
The second example features an analysis of labour productivity convergence, also referred to as beta convergence. This example examines the contributions to labour productivity convergence, of the same three factors considered in the development accounting exercise: (produced) capital per unit of output, human capital, and TFP.
By exploring these examples, readers gain a deeper understanding of the PWT's applicability and how it can contribute to research in the field.