ABSTRACT
It is important to note here that in eq.(1), the direct input of labour is given unity as its value on the RHS, while the value of one unit of labour is calculated as λ on the LHS. Then eq.(1) is rewritten as
(λ, 1) = (λ, 1) A+ (0'n, 1 – λ), (2)
where 0n is the column n-vector whose elements are all zero with a prime indicating transposition. This leads to
(λ, ) = (λ, ) A + (0'n, (1 – λ)),
where is a positive scalar. Supposing (1 – λ) > 0, we normalize so that (1 – λ) = 1. By putting q ≡ (λ, ), we finally obtain the equation
q = q · A + (0'n, 1). (3)
We make the following assumption.
