Labor Absorption by Industry - Brown University
L is a measure of the flow of labor input. K is a measure of the flow of capital input “a” is a fractional exponent, 0 < a < 1, representing labor's share of output (described below) ... Recall that d(ln X) = dX / X which can be interpreted as the percentage change in X. dY / Y = dA / A + a * dL / L + (1-a) * dK / K . or ................
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