From the article:
So, should we use the NPF to guide economic policy to try to achieve the best balance among growth and the distribution of income? Some possibilities:
(1) The criticisms of the aggregate NPF are not important, so that policy conclusions are still sound.
(2) Some of the criticisms are devastating, but we need some tool to guide policy, and until something better comes along our best choice is the aggregate NPF.
(3) Some criticisms are devastating, and as a result we should be very cautious and humble about making policy pronouncements based on our understanding of the NPF.
To me, (3) makes the most sense. But that is not a popular position at the moment.
Source: Arnold Kling, "What’s Wrong With the Neoclassical Production Function," askblog, April 25, 2014
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