Sunday, April 20, 2008

Y = F(K, H, L), or Y/L = F(K/L, H/L, 1)

A former student emails me a link to an article about Mark Sanford, the South Carolina governor whose name is being floating as a possible running mate for John McCain. Based on the following passage, the student suggests that Sanford understands the augmented Solow model:
Mr. Sanford is popular on the right because he understands markets. "There are only two ways to raise the standard of living," he said, "through technology – one backhoe can dig more dirt than 50 men with shovels – and through brain power . . . And that's it."