What Does One-Third Rule Mean?

mean one-third rule
0
Posted

What Does One-Third Rule Mean?

0

A rule of thumb that estimates the change in labor productivity based on changes in capital per hour of labor. Specifically, the one-third rule states that on average an increase of 1% in capital per hour of labor will result in approximately a 0.33% increase in labor productivity. This rule assumes no changes in technology or human capital.

Related Questions