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1.5 Introduction to Modern Economic Growth ITA Calibrated productivity differences 1988 ESP PRT BELFRA SGP CAN HKG IRL COL URY PAK AUT NLD CHE FIN SWE DNK GRC NOR JPN NZL ISR PAN IDN BGD THA LKA Estimated labor-productivity differences Figure 3.6 Comparison of the labor productivity estimates from the Trefler approach with the calibrated productivity differences from the Hall-Jones approach example, labor in Pakistan is 1/25th as productive as labor in the United States In contrast, capital productivity differences are much more limited than labor productivity differences; capital in Pakistan is only half as productive as capital in the United States This finding is not only intriguing in itself, but we will see that it is quite consistent with a class of models of technical change we will study in Chapter 15 It is also informative to compare the productivity difference estimates here to those from the previous section Figures 3.6 and 3.7 undertake this comparison The first plots the labor-productivity difference estimates from the Trefler approach against the calibrated overall productivity differences from the Cobb-Douglas specification in the previous section The similarity between the two series is remarkable This gives us a little confidence that both approaches are capturing some features 146