Shiftwork and the Choice of Technique under Alternative Maximands

Abstract

Attempts to estimate production functions, measure productivity or analyse investment decisions should explicitly concern themselves with the utilisation rate dimension of the flow of capital services. A number of the results already present in the literature with regard to the traditional profit-maximising firm and the labour-managed firm are presented. It is then argued that the rate of profit, as opposed to its level, is of at least substantial importance to the decision-maker in the context of ex ante planning.

We gratefully acknowledge the comments of two anonymous referees on an earlier version of this paper.