1 thought on “Austerity and silly surveys”

  1. Posted 02/04/2015 at 11:42 | Permalink

    I’m confused on your last point
    in a simple production function with labour and capital y=akl , if we assume that the productivity of labour is fixed then either productivity of capital must rise, the amount of capital used must rise or the amount of labour must rise or a combination barring an improvement in technology, so why couldn’t it in part be explained by a rise in the labour input? I’m not saying it’s entirely explained by a rise in labour just that it could in part?

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