Tyler Cowen doesn't seem to know that this discussion of the Marginal Product of Capital is nonsense.
Tyler Cowen also doesn't know that Austrian Business Cycle theory is mistaken.
Robert Barro seems to mistakenly think that one can legimately express production functions as functions of capital goods, measured in numeraire units.
Notice that Tyler Cowen and Robert Barro seem to be using these mistakes in applied and policy-oriented models. I do not see why I should pretend such nonsense has any credibility whatsoever.
4 years ago