What about Robinson's critics of capital measurement? Capital is expected to be a physical good but it is measured with prices, therefore if the price structure changes K changes but it does not mean that there is a change in physical capital.
Labor and Capital has always been and will be the strong body of economic growth. No doubt about that. But, there is so much happening about TFP now and in getting momentum on last past few decades... TFP carry much more noise in the short run than it should. In fact, just as we could see here.. it is mesured as a resid. But, its realation forces with inflation, interest rates and risks are significally diferent from what Labor and Capital have, even in the short run. But, smoothly it has some accumulated effects in the long run that make it so robust and consistent for economic growth. I have 15 years working on financial sector, graduate and master in economics studying TFP in macroeconometric models, and there is no other relevant problem I would mostly like to have the opportunity to reveal its solution.
This right here is one packed gem.
Nice video! Seems like there are a lot of implications of TFP that would be fun to explore.
Reading a book called Good Economics for Hard Times talks about TFP which brings me here
Very helpful video, thanks!
What about Robinson's critics of capital measurement? Capital is expected to be a physical good but it is measured with prices, therefore if the price structure changes K changes but it does not mean that there is a change in physical capital.
Labor and Capital has always been and will be the strong body of economic growth. No doubt about that. But, there is so much happening about TFP now and in getting momentum on last past few decades... TFP carry much more noise in the short run than it should. In fact, just as we could see here.. it is mesured as a resid. But, its realation forces with inflation, interest rates and risks are significally diferent from what Labor and Capital have, even in the short run. But, smoothly it has some accumulated effects in the long run that make it so robust and consistent for economic growth. I have 15 years working on financial sector, graduate and master in economics studying TFP in macroeconometric models, and there is no other relevant problem I would mostly like to have the opportunity to reveal its solution.
i think he's amazing! very clear!