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RE: Re: Estimating Surplus
Doug wrote,
> Conceptually and practically, it's difficult to separate the labor
> income from capital income components of proprietors' income.
Following the recommendation of Mayo Toruno, I'm multiplying proprietors'
income by the ratio of (corp profits / (corp profits + employee comp)). This
ratio is about 11%.
Although Doug is right that conceptual issues are many and complex, I bet
that the "correct" answer would be close to that Mayo suggested.
Eric
.
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