Chapter 27Technical Change and the Aggregate Production Function*
Review of Economics and Statistics
In this day of rationally designed econometric studies and super-input-output tables, it takes something more than the usual “willing suspension of disbelief” to talk seriously of aggregate production function. But the aggregate production function is only a little less legitimate a concept than, say, the aggregate consumption function, and for some kinds of long-run macro-models it is almost as indispensable as the latter is for the short-run. As long as we insist on practicing macro-economics we shall nped aggregate relationships.
Even so, there would hardly be any justification for returning to this old-fashioned topic if I ...