Nice short post from Dan showing why using only an aggregate production function can lead to misleading conclusions about the potential growth effects of AI. Recommended!

Dan Carey@dandaeconman.bsky.social · 2y ago

I'm concerned by some work around the growth effects of AI using aggregate production functions - I put together some thoughts here: forum.effectivealtruism.org/posts/DMxsAG...

Hard to overstate how revelatory this paper was for me — one takeaway I had from it was "small fixed costs can really deter people from optimizing." Which made me think about a few other recent papers where fixed optimization costs are a key ingredient:

Florian Ederer @florianederer.bsky.social · 2y ago

Some of the most important lottery anomalies from the behavioral risk literature (e.g., probability weighting and loss aversion) actually have nothing to do with risk. They also arise in perfectly deterministic settings. Lead article in the latest AER issue: www.aeaweb.org/articles?id=...