A Study Of The Model Of Labor Loss Based On The Proceeding Of Energy In China

Supply and demand are two basic concepts in Economics. The concept of effective demand has been described very clearly and well known, but the other concept of effective demand has rarely been mentioned by academic circle and not been defined uniformly which is the study goal of this dissertation.The dissertation takes the analysis of the energy utilization as a case to decompose the ratio of capital quantity and labor quantity contained in the goods of heat and electricity to study the supply effectiveness of these goods.The dissertation constructed a model of labor loss during production. We can describe the total shadow labor loss verbally as follows:Firms can't best use current feasible technique to result in decreased added output value and labor loss, which equals to the length of line segment of production route between the equal labor curve corresponding with the decreased added output value and the isoquant that should be reached.Above analysis demonstrates that the phenomenon of labor loss is widespread in China because of the reasons such as the governmental qualification administration of labor and firms, subsidy, reduction or exemption of tax, favored land use policies which are given to the state-owned firms or large firms by governments at all levels, improper industry regulations, etc.Absolute labor loss makes laborers expense more labor to get the same compensation in China, so they need to work harder. Relative shadow labor loss decreases the labor share in GDP.