FYI about terminology before people who don't read the paper comment
1. GPT means general purpose technology or any sort of new technology that has a compounding effect on productivity, not the OpenAI model.
2. Productivity in this case means economic output, not the colloquial definition that means "hard work". A construction worker who works 40 hours is colloquially much more personally productive than an underemployed SWE who works 20 hours, but the SWE is economic productivity is higher because they are outputting something of higher dollar and economic value.
3. The crux of this paper is that existing economic metrics are not able to adequately measure the impact of IP and R&D driven innovations in the larger economy,
This completely breaks down under the current reality of AI investment, as players large and small are no longer price-takers. The marginal costs of investment are not constant because we have finite supplies of GPUs, TPUs, memory, hard drives, and power. The Hamiltonian in equations 5 and 6 needs to account for this.
It's not that supply was actually infinite, but you didn't realistically have situations where you said "I want to buy GPUs for a data center" only to be told "there's a 3 year waiting list."
You might have two months after NVidia 3090s came out where they were short, but it is nothing like today.
Q: The J-dip is where capital stock is just about to overtake investment growth, why should it lag the hype trough where presumably value overtakes interest ?
1. GPT means general purpose technology or any sort of new technology that has a compounding effect on productivity, not the OpenAI model.
2. Productivity in this case means economic output, not the colloquial definition that means "hard work". A construction worker who works 40 hours is colloquially much more personally productive than an underemployed SWE who works 20 hours, but the SWE is economic productivity is higher because they are outputting something of higher dollar and economic value.
3. The crux of this paper is that existing economic metrics are not able to adequately measure the impact of IP and R&D driven innovations in the larger economy,
You might have two months after NVidia 3090s came out where they were short, but it is nothing like today.
AI companies are intentionally trying to monopolize the supply of inputs needed for R&D. This violates homogeneity of degree 1.
https://www.financialprofessionals.org/training-resources/re...
Q: The J-dip is where capital stock is just about to overtake investment growth, why should it lag the hype trough where presumably value overtakes interest ?