Two economies, H and F. They both produce output using a Cobb Douglas production function that uses capital and labor.

The savings rate and productivity are different across countries but constant over time. Population grows at the growth rate n, which is constant over time but different across countries.

Both of these economies have experienced zero growth in output per worker for a very long time. Economy H produces, however, twice more output per person than economy F.

How can I use data on the capital-output ratio (k/y) and population growth rate n to figure out the source of F’s poverty?

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