Hypothesis

The production function

expressed by total output Y

The production function expressed by the per capita output y (, N is the labor population)

The variable A corresponding to the hypothesis of L

Note

Assuming, , then, , so

where

K is calculated by the definition (where and r are from the statistical data), rather than calculated by the fixed assets.

A is different in the Cobb-Douglas function with the assumption of L. In, assuming, then The result of A is not only related to the calculation of w, but also to the dimensions of N and other variables. If the Equation (28) is calculated (where), then Y and N using the

different dimensions (such as Y and N

dimensions were billion and thousands of people, or million and people), size A will be different. If the Equation (29) is calculated (where), when K is calculated from, The result is not different from

Equation (28); If the statistics “fixed assets and consumer goods” as K, then the Equation (29) A will be different from the results of Equation (28). Only the A calculated by assuming will not show different results, and is a

dimensionless number.