1.Introducing pollution with disutility to utility function in a stochastic economic growth rate and pollution level by using stochastic optimization method.
4.If this is not true, then there is no longer any reason to expect a tendency towards equality between the real wage and the marginal disutility of labour.
5.(5) is, therefore, subject to the condition that N cannot exceed the value which reduces the real wage to equality with the marginal disutility of labour.
6.If this is true, the wage-goods equivalent of the existing money-wage is not an accurate indication of the marginal disutility of labour, and the second postulate does not hold good.
7.Chapter vi of Professor Carver's Distribution of Wealth clearly envisages interest as the factor which brings into equilibrium the marginal disutility of waiting with the marginal productivity of capital.
8.The insufficiency of effective demand will inhibit the process of production in spite of the fact that the marginal product of labour still exceeds in value the marginal disutility of employment.
9.It follows from this definition that the equality of the real wage to the marginal disutility of employment presupposed by the second postulate, realistically interpreted, corresponds to the absence of 'involuntary' unemployment.
10.Now, in so far as the classical theory assumes that real wages are always equal to the marginal disutility of labour and that the latter increases when employment increases, so that the labour supply will fall off; cet.
11.For there may be no method available to labour as a whole whereby it can bring the wage-goods equivalent of the general level of money wages into conformity with the marginal disutility of the current volume of employment.
12.Thus the volume of employment is not determined by the marginal disutility of labour measured in terms of real wages, except in so far as the supply of labour available at a given real wage sets a maximum level to employment.