The cost of one efficiency unit of labour in the urban informal sector is:
The condition for minimisation of the cost of one efficiency unit of labour is:
Then given the condition of [Alpha] + [Beta] + [Gamma] = 1, the output function labor in efficiency units, [y.sub.t] [equivalent to] [Y.sub.t]/[L.sub.t] exp([Lambda]t), is represented by [y.sub.t] = [Tau]([p.sub.x], [p.sub.n], [Beta])[A.sup.1/(1-[Beta])] [Mathematical Expression Omitted].
If r = p + [Lambda], consumption in efficiency units is constant so that, along the optimal path, consumption per capita grows at the rate of technological progress ([Lambda]).
The aggregate number of efficiency units supplied in period t is [Mathematical Expression Omitted], where [N.sub.t] is the number of workers in period t, each supplying a single unit of physical labor.
where [w.sub.t] is the wage per efficiency unit; therefore the wage per worker is
We consider first the case of equal initial technologies, coupled with different rates of growth in the number of efficiency units
of labor, be this because of demographic reasons, or because of different rates of progress.
Each firm has a production function with constant returns to scale in labour, measured in efficiency units
, (AN) and real capital (K).
This is true either in natural units or in efficiency units
, as the two ratios are the same under the assumption of Hicksneutral progress, which is here assumed to be positive.
The two phases of new student housing are comprised of 28 one-bedroom efficiency units
and 214 four-bedroom suites, with common areas featuring exercise and weight rooms, meeting rooms, laundry facilities, and a public safety satellite office.
Europak PV2096-10 high efficiency units
were installed internally at 8m from floor level.
Define E to be the effort per employee, N the number of employees, [lambda](=E.N) the firm's workforce measured in efficiency units
, the firm then has a short-run effort-augmented production function: