But wait.
That last variable, the one referring to efficiency is known as the residual. Once again Clark puts it in italics to let us know how important it is.
Why the residual?
Let Clark explain:
“This is because, while the other terms in the equation can be directly measured and calculated, efficiency is simply a balancing quantity thrown in to make the sides equate.”
Really? A plug-in to balance the equation.
That’s OK I assume. It can’t be very significant can it?
Well not exactly. It turns out that this immeasurable and incalculable plug-in accounts for a full 70% to 75% of all modern growth....
Finally we are told:
“Note, however, that when we arrive at this final truth as to the nature of modern growth we have lost all ability to empirically test its truth. It is a statement of reason and faith, not an empirical proposition.”
Typical.ROFLMAO.
Absolutely typical.
The Radford Free Press
Mystery Growth Theory
Peter Radford
See also What Does LSE Mean?
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