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Loola's avatar

There are reasons behind the thinking that it is reasonable for the rejection.

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Overcoming Bias Commenter's avatar

Hi Professor Hanson --

I have a comment unrelated to this post, but instead on your "Economic Growth Given Machine Intelligence" paper.

I've been playing around with the simplest version of the model, and it seems like most of the work in the model is done by the *assumption of a steady state*. Specifically, the assumption of a steady state means that interest rates are eventually constant. This causes wages to go to zero as time goes to infinity.

But perhaps there is no steady state for interest rates. Perhaps they increase forever, as for example wages do under the Solow model with exogenous technological growth. This makes intuitive sense as well: if the price of computer capital is falling faster than general technology level is rising, forever, (as is the case in the model), then it would make sense that the value of computers - the interest rate - will rise forever.

Then the result of the model would be that, instead of wages falling to zero as time goes to infinity, interest rates would go to infinity as time goes to infinity and wages would just be way lower - but not go to zero.

I hope that was clear. Do you have any thoughts on this? Thanks!

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