production function
DESCRIPTION
PRODUCTION FUNCTION. Mieczysław Dobija, Marcin Jędrzejczyk http://www.rigel.pl/ina http://swed.ae.krakow.pl mailto:[email protected]. PRODUCTION FUNCTION. PR = W * WP Production (PR) is a composition of human work (W), Assets and the coefficient WP (wage productivity). Where: - PowerPoint PPT PresentationTRANSCRIPT
PRODUCTION FUNCTION
Mieczysław Dobija Marcin JędrzejczykMieczysław Dobija Marcin Jędrzejczyk
httpwwwrigelplinahttpswedaekrakowpl
mailtojedrzejmaekrakowplmailtojedrzejmaekrakowpl
PR = W WP
Production (PR) is a composition of human work (W) Assets and the coefficient WP (wage productivity)
WherePR ndash value of manufactured productsW ndash cost of labourWP ndash wage productivity
PRODUCTION FUNCTION
Human
Capital (H)W = u H W = u H
(1-a) W
Equalising mechanism
GDP ndash MK = 0
Assets
Production
functionPR = W WP
Money Creation BANKS
a W
MK = W WK
CWCobb i PHDouglas
Product X arises as a result of composition
X = ANα Cβ
where N ndash number of employees C ndash capital A α β are constants that have to be estimated on the basis of empirical data about production Coefficient A can be equal to 1 for a+bgt1 or Agt1 for a+blt1
Second type cognition ndash does not explain the nature of the problem
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Production function can be expressed as a sum of expenses
PR = (W + zA ndash sA) (1 + r) (1 + I)
where PR ndash value of production expressed in realization prices W ndash labour costs A ndash Assets in historical value z ndash assetsrsquo yearly waste indicator (composition to products) s ndash assets waste in production process (losses) r ndash appreciation of historical values to the market values I ndash value appreciation as a result of additional intellectual capital in the company
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PR = W WP
Production (PR) is a composition of human work (W) Assets and the coefficient WP (wage productivity)
WherePR ndash value of manufactured productsW ndash cost of labourWP ndash wage productivity
PRODUCTION FUNCTION
Human
Capital (H)W = u H W = u H
(1-a) W
Equalising mechanism
GDP ndash MK = 0
Assets
Production
functionPR = W WP
Money Creation BANKS
a W
MK = W WK
CWCobb i PHDouglas
Product X arises as a result of composition
X = ANα Cβ
where N ndash number of employees C ndash capital A α β are constants that have to be estimated on the basis of empirical data about production Coefficient A can be equal to 1 for a+bgt1 or Agt1 for a+blt1
Second type cognition ndash does not explain the nature of the problem
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Production function can be expressed as a sum of expenses
PR = (W + zA ndash sA) (1 + r) (1 + I)
where PR ndash value of production expressed in realization prices W ndash labour costs A ndash Assets in historical value z ndash assetsrsquo yearly waste indicator (composition to products) s ndash assets waste in production process (losses) r ndash appreciation of historical values to the market values I ndash value appreciation as a result of additional intellectual capital in the company
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Human
Capital (H)W = u H W = u H
(1-a) W
Equalising mechanism
GDP ndash MK = 0
Assets
Production
functionPR = W WP
Money Creation BANKS
a W
MK = W WK
CWCobb i PHDouglas
Product X arises as a result of composition
X = ANα Cβ
where N ndash number of employees C ndash capital A α β are constants that have to be estimated on the basis of empirical data about production Coefficient A can be equal to 1 for a+bgt1 or Agt1 for a+blt1
Second type cognition ndash does not explain the nature of the problem
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Production function can be expressed as a sum of expenses
PR = (W + zA ndash sA) (1 + r) (1 + I)
where PR ndash value of production expressed in realization prices W ndash labour costs A ndash Assets in historical value z ndash assetsrsquo yearly waste indicator (composition to products) s ndash assets waste in production process (losses) r ndash appreciation of historical values to the market values I ndash value appreciation as a result of additional intellectual capital in the company
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
CWCobb i PHDouglas
Product X arises as a result of composition
X = ANα Cβ
where N ndash number of employees C ndash capital A α β are constants that have to be estimated on the basis of empirical data about production Coefficient A can be equal to 1 for a+bgt1 or Agt1 for a+blt1
Second type cognition ndash does not explain the nature of the problem
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Production function can be expressed as a sum of expenses
PR = (W + zA ndash sA) (1 + r) (1 + I)
where PR ndash value of production expressed in realization prices W ndash labour costs A ndash Assets in historical value z ndash assetsrsquo yearly waste indicator (composition to products) s ndash assets waste in production process (losses) r ndash appreciation of historical values to the market values I ndash value appreciation as a result of additional intellectual capital in the company
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Production function can be expressed as a sum of expenses
PR = (W + zA ndash sA) (1 + r) (1 + I)
where PR ndash value of production expressed in realization prices W ndash labour costs A ndash Assets in historical value z ndash assetsrsquo yearly waste indicator (composition to products) s ndash assets waste in production process (losses) r ndash appreciation of historical values to the market values I ndash value appreciation as a result of additional intellectual capital in the company
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
After reformulating previous equation we receive
PR = W[1 + AW (z - s)] (1 + r) (1 + I)
Because labour costs W are human capital derivatives
W = u H
where u is a level of payment for conducted work and H denotes the value of human capital After adequate substitution
PR = W[1 + AH (z - s)u ] (1 + r) (1 + I)
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Because coefficients r and I are close to zero using the relation 1 + x = ex we can reformulate the production function
PR = W er eI [1 + AH [(z - s)u] ] = W WP
Therefore we can estimate the relation that represents productivity ratio
]1[u
sz
H
AeWP Ir
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
WP = PRW
WP is wage productivity understood as multiplier of labour costs that is generating the value of production and at the same time the value of production that is distributed to one money unit of labour cost
The above equation can be seen from macroeconomic point of view
GDP = W WP
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
Practical approach to this function requires some simplification of the previous formulas
PR = W e (AH)Z
where synthetic coefficient Z denotes the level of management Z = Z(z s u r I) Value of this coefficient is measurable in terms of accounting and financial reporting
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
We can see that accounting system generates the data necessary to measure this very coefficient Z describing the quantitative results of management level in the company The estimation of the Z coefficient has been shown in the table below
Period PR W A L Z
1 30 mln 05 mln 20 mln 048 mln 537
2 35 mln 06 mln 25 mln 044 mln 388
3 40 mln 06 mln 25 mln 052 mln 493
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION
PRODUCTION FUNCTION