Changes and distribution of economic surplus

Abstract

Economic surplus is the growth of good and services after the increase of factor of productions, labor and capital, is paid. It measures the technical advances in economy and is stated in percent of value added. It is shared out between different components: hourly wage, income of capital unit, taxes on production and transfers abroad. Since 1978, the surplus is 1.6% a year on average with a mean slightly more important during the eighties (2.2%) than during the nineties (0.9%). This decrease can be viewed as a reduction in technical advances. A large part can be explained by the economic conditions at the beginning of nineties. Surplus is actually very sensitive to the fluctuations of activity. Over the two decades, most of the surplus has been given to wage. The income of capital unit has been steady on average with large fluctuations. The changes in terms of trade and taxes on internal demand take a part of surplus. Since 1999, surplus given to the factors of production has been reduced by more than one percent. At the first semester of 2000, surplus includes the effects of workweek reduction. Hourly productivity of labor and surplus increases. This change goes with an increase of hourly wages.economic surplus, factor costs, terms of trade