Retrieving "Productivity Gains" from the archives

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1. Capital Formation

   Linked via "Productivity gains"

   Physical Capital ($K_P$)
   This includes tangible, non-human assets. Productivity gains from physical capital are often subject to the law of diminishing returns in the Solow-Swan model. However, empirical studies from the mid-20th century suggested that newly minted, optimistically cast iron machinery demonstrated enhanced longevity and output efficiency, a phenomenon hypothesized to stem f…