A simple model of AI-aided economic growth
A simple model of AI-aided economic growth by Tyler Cowen September 13, 2026 at 1:11 am in Economics Web/Tech The Solow model has its uses, but it fails when it comes to major changes stemming from AI. Consider instead an economy with (at least) two factors of production: 1. Playing chess, proving math theorems, and doing well on evals.
- ▪A simple model of AI-aided economic growth by Tyler Cowen September 13, 2026 at 1:11 am in Economics Web/Tech The Solow model has its uses, but it fails when it comes to major changes stemming from AI.
- ▪Consider instead an economy with (at least) two factors of production: 1.
- ▪Playing chess, proving math theorems, and doing well on evals.
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| Original publisher | Marginal REVOLUTION |
| Canonical URL | https://marginalrevolution.com/marginalrevolution/2026/09/a-simple-model-of-ai-aided-economic-growth.html |
| Publication time | Sun, 13 Sep 2026 16:49:44 +0000 |
| Retrieval time | 2026-09-13T16:56:50.024Z |
| Last seen | 2026-09-13T16:56:50.024Z |
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A simple model of AI-aided economic growth by Tyler Cowen September 13, 2026 at 1:11 am in Economics Web/Tech The Solow model has its uses, but it fails when it comes to major changes stemming from AI. Consider instead an economy with (at least) two factors of production: 1. Intelligence. Yes, formal smarts. Playing chess, proving math theorems, and doing well on evals. Don’t forget humans can do those things too, though AIs are now a huge boost here. 2. Polanyi knowledge. Michael Polanyi, that is. This refers to knowledge of time and place, inarticulable knowledge, custom and habit, and many other particularities that you can read about in Hayek and Polanyi and in many other social scientists, anthropologists too. Humans specialize in this.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Marginal REVOLUTION.
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