Równania procesu produkcji

Extended producting function is the major instrument in analyzing the production process. The Cobb-Douglas production function with constant returns to scale is recommended. The fixed capital and employment impacts are discussed. Major role is played by the total factor productivity (TFP). Its measurement problems are discussed in detail. The growth o f TFP is explained taking into account the R&D capital and human capital. Domestic and foreign R&D capital is distinguished, various channels of foreign R&D capital transfer are discussed. The equations explaining demand for labour and labour supply are specified and the rate of unemployment determined.