When human and physical capital accumulate, output grows. Most people would agree with this statement, but what does it mean? This depends on the meaning of the words capital and output. I don’t offer a precise definition, but both ideas seem to have something to do with useful configurations of matter and information. That is, capital and output are
Economics as thermodynamics
Economics as thermodynamics
Economics as thermodynamics
When human and physical capital accumulate, output grows. Most people would agree with this statement, but what does it mean? This depends on the meaning of the words capital and output. I don’t offer a precise definition, but both ideas seem to have something to do with useful configurations of matter and information. That is, capital and output are