Eliezer, even if you measure output as you propose in terms of a state space reduction factor, my main point was that simply “dividing by the resources used” makes little sense. Yes a production function formulation may abstract from some relevant details, but it is far closer to reality than dividing by “resources.” Yes a market economy may help one to group and measure relevant inputs, and without that aid you’ll have even more trouble grouping and measuring inputs.
Eliezer, even if you measure output as you propose in terms of a state space reduction factor, my main point was that simply “dividing by the resources used” makes little sense. Yes a production function formulation may abstract from some relevant details, but it is far closer to reality than dividing by “resources.” Yes a market economy may help one to group and measure relevant inputs, and without that aid you’ll have even more trouble grouping and measuring inputs.