Starts 19 Jun 2017 14:00
Ends 19 Jun 2017 15:00
Central European Time
ICTP
Central Area, 2nd floor, old SISSA building, via Beirut
Aggregation of different values in the complex systems is one of the major goals of the science of complexity. In economy there are some known stylized facts which address relations between different aggregate values. Within them the relation between aggregate wage income and national income has been of the most interesting ones. Labor share of income has been sustainable over a century and has been about two third of the national income in the United States. Cobb and Douglass suggested the hypothesis of the aggregate production function to address the roots of the sustainability. Their hypothesis however has been under huge criticism. In this talk we introduce the theory of production function. We then look over the theory from the statistical physics point of view. In the following we aggregate capital in a soup of firms. In the end we present a new proposal for the roots of the sustainability of the labor share of income.