en>Vsmith: Reverted edits by 64.201.57.120 (talk) to last version by Tlroche

2013-10-14T22:32:14Z

Reverted edits by 64.201.57.120 (talk) to last version by Tlroche

← Older revision		Revision as of 00:32, 15 October 2013
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	~~Andera is what you~~ can ~~call her but she never truly favored that name. I~~'~~ve always cherished living in Kentucky but now I~~'~~m considering other options~~. ~~Office supervising~~ is ~~exactly where my primary earnings arrives from but I~~'~~ve always wanted my personal company~~. ~~To play lacross is~~ the ~~thing I love most~~ of ~~all~~.<br><br>~~Visit my blog post - online reader~~ ([~~http~~://~~Www.Octionx.Sinfauganda.Co.ug~~/~~node~~/~~22469 Highly recommended Online site~~])		{{Unreferenced\|date=December 2006}}
			In [[macroeconomics]], '''factor shares''' are the share of production given to the [[factors of production]], usually [[Capital (economics)\|capital]] and [[Labour (economics)\|labor]]. This concept uses the methods and fits into the framework of [[neoclassical economics]].

			==Derivation==
			In [[exogenous growth model]]s, the [[production function]] can be represented by:

			<math>Y=F(K,L)\,</math>

			with ''Y'' total production, ''K'' capital, and ''L'' labor.
			So a [[representative agent]] will attempt to maximize a profit function:

			<math>\pi = max_{\{K,L\}} F(K,L)*P - rK - wL\,</math>

			where <math>rK+wL\,</math> is the cost to the firm, ''r'' the rental rate of capital, ''w'' the wage rate for labor, and ''P'' is the price of the output.

			As in [[microeconomics]] [[supply and demand]] models, first-order conditions that the derivative of this function with respect to capital and labor will be zero at the functions maximum. Thus we can calculate the wages and the rental rate of capital:

			<math>w=D_L[F(K,L)]\,</math> and <math>r=D_K[F(K,L)]\,</math>.

			Now we can write the expenditure allocated to labor as <math>wL=D_L[F(K,L)]*L\,</math>

			and to capital as <math>rK=D_K[F(K,L)]*K\,</math>

			So the factor share devoted to labor is:

			<math>wL/Y=D_L[F(K,L)]*L/F(K,L)\,</math>

			and the factor share devoted to capital is:

			<math>rK/Y=D_K[F(K,L)]*K/F(K,L)\,</math>

			{{DEFAULTSORT:Factor Shares}}
			[[Category:Macroeconomics]]

en>Aetheling: Insert CO2 template for consistency with the rest of the article

2012-03-20T16:48:14Z

Insert CO2 template for consistency with the rest of the article

New page

Andera is what you can call her but she never truly favored that name. I've always cherished living in Kentucky but now I'm considering other options. Office supervising is exactly where my primary earnings arrives from but I've always wanted my personal company. To play lacross is the thing I love most of all.<br><br>Visit my blog post - online reader ([http://Www.Octionx.Sinfauganda.Co.ug/node/22469 Highly recommended Online site])

Carbon dioxide equivalent - Revision history

en>Vsmith: Reverted edits by 64.201.57.120 (talk) to last version by Tlroche

en>Aetheling: Insert CO2 template for consistency with the rest of the article