Capital-labor ratios generated by family consumption
Osterberg, Mark W.
Master of Arts
The determination of capital and labor use is generally framed in terms of profit maximizing and technological considerations. This thesis suggests that an important relationship between the level of family income and the use of factors of production also exists. The finding of this empirical study is that different income-classes have consumption patterns which require different mixtures of labor and capital. The implications for developmental economics, industrial organization and public finance of this empirical observation are reviewed in the paper.