tag:blogger.com,1999:blog-2098432983500045934.post3578601929521828021..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: A Statistical DiscrepancyThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2098432983500045934.post-11561482003963654262016-04-01T04:09:12.825-04:002016-04-01T04:09:12.825-04:00(after a long delay)
In the post I wrote --
This ...(after a long delay)<br /><br />In the post I wrote --<br /><b>This is what fascinates me about TFP: It's a black box.</b><br /><br />Just the other day <a href="http://rogerfarmerblog.blogspot.com/2016/03/idiopathic-tardus-augmenti.html" rel="nofollow">Roger Farmer</a> wrote --<br /><b>... It is a black box we call technological progress.</b><br /><br />Farmer also says --<br />"There has, of course, been a great deal of work on theories of endogenous growth. Paul Romer and Robert Lucas have both produced seminal pieces on that topic that led to reams of economic research papers that try to understand Solow’s black box."<br /><br />He adds --<br />"To a macroeconomist who is interested in secular stagnation, these theories are a big disappointment."<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-91901459894125260152014-10-01T09:26:38.714-04:002014-10-01T09:26:38.714-04:00My point is you haven't made a good case that ...<br />My point is you haven't made a good case that TFP has anything to do with the discrepancy between GDI and GDP. For one thing the GDI to GDP discrepancy tend to balance out if you look at a long enough period. The graphs I've seen show periods when one was higher and other periods when the other is higher. <br /><br />The story that goes with the TFP calculation may well be bogus but I don't think the formula is intended to be an accounting of the difference found in measuring production and income. jimnoreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-28721462139025510702014-10-01T05:03:09.651-04:002014-10-01T05:03:09.651-04:00Microfoundations?
Microfoundations?<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-24478797801458306662014-09-30T22:03:12.655-04:002014-09-30T22:03:12.655-04:00If somebody claims they are calculating TFP for a ...If somebody claims they are calculating TFP for a particular segment of the economy (durable goods for instance) it seems obvious to me that there are "other costs" that are not income to that segment.jimnoreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-42905435928532588662014-09-30T17:49:37.305-04:002014-09-30T17:49:37.305-04:00Jim wrote: "The story that goes with making t...Jim wrote: "The story that goes with making that calculation is that if you see a higher portion of the fruits of production going to labor and capital and less to other costs that indicates production is getting more efficient."<br /><br />There are no "other costs". The factors of production (labor and capital, say) receive all the income that is generated by the production of output. <br /><br />There are no other costs: GDI equals GDP.<br /><br />This is all new to me, but when they figure TFP it seems they don't look at the <i>cost</i> of labor. They look at the <i>hours</i> of labor. And they look in particular at the <i>growth of hours worked in comparison to the growth of output</i>. And they do something similar with capital. <br /><br />If in a period of N years labor and capital grow by 20%, then you might expect output to grow by 20% also. If output grows more than 20%, this is when they make their claims about improved efficiency: A given amount of input produces more output.<br /><br />Here is the problem I have: You can't just claim "it must be efficiency" but that is what they seem to do.<br /><br />I want to know the details of what makes the economy more "efficient". I think a lot of it must arise from the the quantity, velocity, and distribution of money and debt.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com