Thanks for this Parker. I continue to think this research is insanely cool.
I agree with 1)
On 2), the condition you find makes sense, but aren’t you implicitly assuming an elasticity of substitution of 1 with Cobb-Douglas?
Could be interesting to compare with Aghion et al. 2017. They look at a CES case with imperfect substitution (i.e., humans needed for some tasks).
https://www.nber.org/system/files/working_papers/w23928/w23928.pdf
Yes, definitely. In general, I don’t have a great idea about what Z(⋅) looks like. The Cobb-Douglas case is just an example.
Thanks for this Parker. I continue to think this research is insanely cool.
I agree with 1)
On 2), the condition you find makes sense, but aren’t you implicitly assuming an elasticity of substitution of 1 with Cobb-Douglas?
Could be interesting to compare with Aghion et al. 2017. They look at a CES case with imperfect substitution (i.e., humans needed for some tasks).
https://www.nber.org/system/files/working_papers/w23928/w23928.pdf
Yes, definitely. In general, I don’t have a great idea about what Z(⋅) looks like. The Cobb-Douglas case is just an example.