Unlocking Optimal Product Variety Leads to Explosive Economic Growth
The article explores how having a variety of products and increasing growth can benefit society. The researchers studied a model with two sectors: one making a basic product and the other making different parts for it. They found that having more product options can lead to better productivity and more growth, but too much variety can also cause problems. If the different products are not useful, growth can be slow, and there may not be enough options for consumers. The study shows that finding the right balance of product variety is important for a healthy economy.