The Best Investment Writing Volume 5: Andrew Patterson, Vanguard - The Idea Multiplier: An acceleration in innovation is coming
The Meb Faber Show - Better Investing
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The Effects of the Idea Multiply on Productivity
In recent years, the idea multiplier of ten of our 14 industries has increased markedly. This suggests a productivity may be on the horizon. A zero point, one unit increase in an industry's idea multiply will increase annual productivity growth by two point six per centage points from its current level over the subsequent five year period. In order to account for initial levels of productivity and capital, we include a lagged variable of productivity growth and real output per worker as independent variables.
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