Equation 8 · The Jagged Frontier Fallacy: Deconstructing Harvard's Canonical AI Productivity Study
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Symbol y
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where each task y(s) can be performed by labor or by an automated system if that task falls within the feasible automated set . Under Hulten’s theorem, the first-order aggregate TFP cost savings from automating a subset of tasks is bounded by the expenditure share of the automated tasks multiplied by the average unit cost reduction:
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