Flaschel, Peter; Franke, Reiner; Veneziani, Roberto - Department of Economics, University of Massachusetts-Amherst - 2010
This paper analyzes labor productivity and the law of decreasing labor content (LDLC) originally formulated by Farjoun and Machover (1983). First, it is shown that the standard measures of labor productivity may be rather misleading, owing to their emphasis on monetary aggregates. Instead, the...
