The Labour Transaction System under Dynamic Conditions

Abstract

Economists and planners have variously attempted to measure labour multipliers under static conditions, thus providing eficient estimates. However, the dynamics of the labour interactive system have not been sufficiently explored. The present paper attempts to design an input–output system of labour, defined in terms of the labour equivalence coefficient rather than the technologically determined labour coefficient. It provides a measure for the labour multiplier under dynamic conditions. The labour equivalence coefficient is a disaggregated expression of the technological input coefficients including all costs incurred in production. Disaggregation of the variables and parameters involved in the system makes it an efficient planning tool.