DEDUCING INDIRECT AGGREGATE FACTOR DEMAND, SUPPLY AND PROFIT CURVES
Abstract
The aim of this research is to derive the equations of indirect aggregate factor demand, aggregate supply (forming a new growth model) and aggregate profit functions. In the study, based on the perfectly competitive firm profit maximization model, the macroeconomic growth model based on two, three and four factors of production, the equations of aggregate factor demand and total profit were inferred in terms of prices of goods and factors of production using optimization, derivative and consolidation formulas. A new macroeconomic model of growth, factor demand, and profit can be expressed, explained, and modeled in terms of the average commodity and factor prices of the economy. Theoretically, inferences are formed according to price variables linked to four factors of production. On the other hand, in practice, the corresponding variables may not be found in appropriate formations. The study will be leading to establishing and estimating macroeconometric indirect aggregate supply, factor demand and profit models. Additionally, the macroeconomic equations reached in the study can be developed into applied panel data models.
Keywords
modeling, firm and aggregate, indirect factor demand, supply, profit
Supporting Institution
nonapplicable
Ethical Statement
etiğe uygundur
References
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