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#79 – Tamay Besiroglu on Explosive Growth from AI

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CHAPTER

The Dynamics of Economic Growth and Innovation

This chapter explores increasing returns to scale and their impact on economic growth, particularly through R&D models. It discusses the historical acceleration of growth since the Industrial Revolution and the implications of AI in enhancing productivity. Additionally, it examines the returns on software R&D, using chess engine development as a case study to assess the relationship between research efforts and technological improvements.

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