Differing Roles of Leisure and Productivity in GDP - A Machine Learning based comparative analysis of Germany and USA
Abstract
A Random Forest model accurately predicts GDP based on working hours and Total Factor Productivity, with differences in social structure reflected through feature contributions analyzed via Gini importance, SHAP plots, and partial dependency.
The GDP of a country is modelled as the relative interaction between two agents - working hours, reflecting the social choice of a population, and Total Factor Productivity, reflecting the collective investment in productivity enhancers. It is shown that a Random Forest model can accu- rately predict the GDP from these two factors. The differences in the choices made by Germany and USA are analysed though Gini importance, SHAP plots and partial dependency. It is shown that the differences in the social structure of the countries are reflected in the relative contribution of working hours and productivity to the GDP.
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