4 ms·
I suspect the Solow residual comes mainly from gains through minimizing inventories and reducing the amount of idleness workers have. The value of energy and t
by ryacko 7y ago
I suspect the Solow residual comes mainly from gains through minimizing inventories and reducing the amount of idleness workers have.
The value of energy and technology is important for societies designed around nation states which occasionally require the energy and technology to be repurposed for war. It could be said the history of modern warfare is using energy and metallurgy to shoot projectiles further and further.
It’s obviously unsustainable, but leaving the arms race requires multilateral agreements to do so.
- dredmorbius 7y agoWith a causal mechanism -- "labour without energy is a corpse, capital without energy is a sculpture" -- and an r value approaching or above 0.9, I suspect you're wrong.
- ryacko 7y agoLabor without brains is a horse meant for the fields; in times of trouble, hammers will forge weapons of war. Economic statistics fail to account for immeasurable and uncountable things, the immeasurable can only be guessed.
- dredmorbius 7y agoWhat is brains without energy? What is brains' relationship to energy? If by "brains" you mean "technology", in the economic sense of "increasing total factor productivity" or more concisely, efficiency, then the best that brains are is an efficiency factor applied to energy input. That is, brains are still a factor multiplier on energy, and not an independent input.