Latest / The Productivity Podcast with Fexingo: Output, Efficiency, and Long-Term Economic Growth
The Solow Paradox and What It Means for AI Productivity
In 1987, economist Robert Solow observed that computers were everywhere except in the productivity statistics. That became known as the Solow Paradox, and it still haunts economists today. This episode unpacks why technological revolutions don't always boost measured productivity right away — from measurement bias to the lag between invention and diffusion. Lucas and Luna explore the original context of Solow's quip, the productivity slowdown of the early 2000s, and what recent data from AI-wielding firms might tell us. They consider the hypothesis that we may be entering a new…
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