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No. The inputs are labour and capital, so that's already taken care of. One answer might be "TFP reflects technical knowledge; the more knowledge there is, the
by dash2 5y ago
No. The inputs are labour and capital, so that's already taken care of.
One answer might be "TFP reflects technical knowledge; the more knowledge there is, the easier it is to generate new knowledge". But you'd have to get into growth macro for the details. Indeed, Romer is the person.