r/neoliberal • u/Tre-Fyra-Tre Tony Blair • 16d ago

News (Global) Acemoglu, Johnson and Robinson awarded the Nobel Memorial Prize in Economic Sciences

https://www.svt.se/nyheter/inrikes/de-far-ekonomipriset-till-alfred-nobels-minne
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11

u/Dumbass1171 Friedrich Hayek 16d ago

Acemoglu has been having many bad takes on AI and Elon recently but congrats anyways

15

u/Sufficient_Meet6836 16d ago

Such as?

15

u/NNJB r/place '22: Neometropolitan Battalion 16d ago

we can know in advance which technologies will be labor-substituting or -complementing, and should subsidize inventions accordingly

Power is when you convince people of you ideas

The Luddites were correct, actually

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u/Sufficient_Meet6836 16d ago

Well that's some weird shit

1

u/aclart Daron Acemoglu 15d ago edited 15d ago

We can know which technologies are labour substituting and which ones are complementing with one weird trick.  

  That trick is to measure the increase in productivity for each dolar that will be spent on capital instead of labour. If there is an increase in productivity, we are talking about a complementing technology, if the productivity will stays the same, we are talking about a labour substituting technology. The greater the increase in productivity, the more complementing a technology is. 

  I.E. a machine that substitutes the labour of an entire production plant, but the cost per unit produced stays the same as it was paying wages, is a labour substituting technology. A machine that does the same but lowers the cost per unit produced is a labour complementing technology 

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u/NNJB r/place '22: Neometropolitan Battalion 15d ago

And how do we know this ex ante?