The AI Production Function: Code Capital, Context Capital, and Computational Labor

A generalized production framework for AI-native economies: a conceptual re-grounding and a falsifiable research program, not yet an empirically validated theory. It re-grounds the classical factors as Code Capital (C), Context Capital (X), and Computational Work (W), derives Y = A * C^alpha * X^beta * W^gamma, proves it nests the Cobb-Douglas function, specifies how each factor can be operationalized, confronts the simultaneity problem in identifying the elasticities, weighs the labor interpretation of compute against capital-service and intermediate-input alternatives, and states falsifiable hypotheses. Paper text is licensed CC-BY 4.0; accompanying code (verification, identification demo, Section 9 regenerator) is MIT.