Capital's share of income #4
Description
A relevant parameter for the aggregate production function is capital's share of income.
To compute this for VA, we can start by finding labor's share of income: (wages + salaries)/GDP.
Total wages and salaries for VA in 2022 are (from the QCEW) are: $281,420,499,712
And divide by VA's GDP from the BEA state estimates. In 2022 this was $649,393 million.
The labor share of income thus equals: 281,420,499,712/649,393,000,000 = 0.43335930586255167
Capital share = 1 - labor share = 1 - 0.433 = 0.567.
This seems a bit high, the for the whole use, the capital share is about 0.38.