Saturday, 4 June 2016

Correlation? Causation?

2 recent sets of figures from the USA raise a question of 'connectivity'/  Labour productivity refuses to rise - and investment in plant and equipment has declined over the last 10 years.  These can probably be correlated but is there a causal relationship?

Well, I can't prove anything but let's just say that labour productivity rises most quickly when capital is substituted for labour.

No comments: