Link post
Note: This post was written quite quickly and I’m not well versed in this subject matter. Thomas’ paper here and Dylan Matthews’ excellent write-up on it here.I would love to spark some discussion on this: total factor productivity growth being linear in many developed countries, not exponential, could potentially be very scary.Of course, as Dylan mentioned, TFP has issues. I believe the main critique is that, due to its simplicity, it can sometimes remain the same even after changes in technology and productivity.
Discussion on Thomas Philippon’s paper on TFP growth being linear
Link post
Note: This post was written quite quickly and I’m not well versed in this subject matter.
Thomas’ paper here and Dylan Matthews’ excellent write-up on it here.
I would love to spark some discussion on this: total factor productivity growth being linear in many developed countries, not exponential, could potentially be very scary.
Of course, as Dylan mentioned, TFP has issues. I believe the main critique is that, due to its simplicity, it can sometimes remain the same even after changes in technology and productivity.