tag:blogger.com,1999:blog-1740670447258719504.post6670227960640707610..comments2024-03-27T03:00:27.024-04:00Comments on Facts & other stubborn things: Oh Matt, Matt, MattEvanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1740670447258719504.post-70297328243486747392011-09-13T12:59:22.399-04:002011-09-13T12:59:22.399-04:00So what you're telling me, Mattheus, is that H...So what you're telling me, Mattheus, is that Hayek used aggregation repeatedly in the book to provide a useful abstraction of a theory which did not imply the homogenization of the variables involved. Is that what you're telling me?<br /><br />I'd agree - but that's precisely what you're coming out against in other peoples' usage of it.<br /><br />So be consistent one way or another. Reject Hayek and Solow and Cobb-Douglas over this or reject none of them over this.Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-13864540002501732882011-09-13T12:46:48.875-04:002011-09-13T12:46:48.875-04:00And you say this about Hayek knowing full well tha...And you say this about Hayek <b>knowing full well</b> that Solow's growth models and all Cobb Douglas derivative functions are predicated on exactly K and L. Cmon man, let's get serious.Mattheus von Guttenberghttps://www.blogger.com/profile/09404889240800715511noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-43620710609928153492011-09-13T12:45:39.523-04:002011-09-13T12:45:39.523-04:00Does this mean you've chosen to abandon Hayek?...<i>Does this mean you've chosen to abandon Hayek? After all in P&P he presents an aggregate of consumer goods and an aggregate of factors of production - not JUST K or L, but both K and L! That's even more aggregated than I have here!!!</i><br /><br />You read Prices and Production, Daniel. You should know better. In the first place, making a distinction between early and late stage capital goods - as well as specific versus nonspecific capital goods - is not as aggregated as "K and l;" CERTAINLY not more so.<br /><br />In the second place, P&P was made simple for exposition. The aggregation and algebraic simplification were made to allow the reader a basic overview of his theory because it was a pretty new theory.<br /><br />If you read Pure Theory of Capital and come back to me that it's all K and L, I'll stop giving Hayek the benefit of the doubt.Mattheus von Guttenberghttps://www.blogger.com/profile/09404889240800715511noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-35301329130892452542011-09-13T06:21:30.029-04:002011-09-13T06:21:30.029-04:00Mattheus - you may not be getting your money's...Mattheus - you may not be getting your money's worth.<br /><br />Does this mean you've chosen to abandon Hayek? After all in P&P he presents an aggregate of consumer goods and an aggregate of factors of production - not JUST K or L, but both K and L! That's even more aggregated than I have here!!!<br /><br />So if you want anyone to take you seriously here, you're going to have to be consistent and denounce every explication of ABCT I've ever seen (others of which follow the same conventions).Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-22720072752252372522011-09-12T22:56:22.717-04:002011-09-12T22:56:22.717-04:00Just to clarify, I recognize that nonresidential i...Just to clarify, I recognize that nonresidential investment is also below trend. However, pointing out that investment is lagging is almost always immediately followed by some kind of policy prescription. While your point seems more academic than anything else it does seem to point to a "well then what?" in which we start talking about "business" incentives like the one that seems to be the focal point of the Obama jobs package or we start talking about something empty like "confidence".<br /><br />I think this is wrong headed and that the real policy push needs to be in the direction of dealing with residential investment.Andrew Bossiehttps://www.blogger.com/profile/00353842153288646125noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-68126744244812771052011-09-12T15:45:30.145-04:002011-09-12T15:45:30.145-04:00I literally laughed out loud when I read K and L.
...I literally laughed out loud when I read K and L.<br /><br />My undergraduate macro professor knows this aggregation is worthless.Mattheus von Guttenberghttps://www.blogger.com/profile/09404889240800715511noreply@blogger.com