Notes on aggregation

Abstract

Brown and Chang(1976) consider questions of output and capital aggregation in the context of a neo-classical general equilibrium model. Inter alia, they derive a condition, using Hicks' composite commodity theorem, for capital input aggregation under the assumption of distinct depreciation rates. Operating with this same assumption, we provide conditions for capital output and total output aggregation; our conditions can be interpreted in terms of equal labour shares in net output and of uniform organic composition of capital.