| Article ID | Journal | Published Year | Pages | File Type | 
|---|---|---|---|---|
| 5103090 | Physica A: Statistical Mechanics and its Applications | 2017 | 9 Pages | 
Abstract
												We review the production function and the hypothesis of equilibrium in the neoclassical framework. We notify that in a soup of sectors in economy, while capital and labor resemble extensive variables, wage and rate of return on capital act as intensive variables. As a result, Baumol and Bowen's statement of equal wages is inevitable from the thermodynamics point of view. We try to see how aggregation can be performed concerning the extensive variables in a soup of firms. We provide a toy model to perform aggregation for production and the labor income as extensive quantities in a neoclassical framework.
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											Authors
												Ali Hosseiny, Mauro Gallegati, 
											