The third elements factor cost
subsystem has two indicators, namely "average wage (X7) and fixed asset investment in the proportion of loans to finance (X8)".
As for profits, interest, depreciation, and land rent, they are added or adjusted to eliminate further divergences between established prices and factor costs.
In sum, what we are suggesting here is that the size of the implicit grants economy can be measured by the gross divergences between market prices and adjusted factor costs.
It must be underscored that cost advantage grows as much out of efficient-to-manufacture product designs and leading process technology as it does out of factor costs
oz" even economies of scale.
The factor costs associated with input of the capital factor consist of two components.
The same price indexes (producer and consumer price indexes) will be used, and unit factor costs will be estimated from ratios of factor input expenditures to corresponding real output estimates.
In doing so, they take an Integrated view of costs: factor costs
, scale advantages, productivity, and also - most importantly - the potential savings in design-to-cost.
We say that we want health care coverage for everyone and that we want the best health care in the world, but we have not been willing to factor costs
or rationing into any of the equations.
Equation 3 sums the value added by the sectors, to give the gross domestic product at factor costs
Industrial structure of GDP at factor cost
series on the SIC 1980 basis.