How Does Dividing Both Sides by (Y/L)α Transform the Production Function?

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The discussion centers on understanding the transformation of the production function equation after dividing both sides by (Y/L)α. The original equation expresses output per worker (Y/L) in terms of capital per worker (K/L) and labor efficiency (E), with alpha as a parameter. The confusion arises when attempting to derive (Y/L)1-α = (K/L)α (E)1-α from the original equation. Participants highlight the need for clarity on notation and the logic behind the transformation, questioning the relevance of the power rule in this context. The thread emphasizes the importance of providing background information and clearly stating the desired outcome for better assistance.
albert2008
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Dear People,
This is Production Function and it comes from my economics book. The equation is saying that output per worker (Y/L) is equal to capital per worker (K/L) times the efficiency of labor (E) where alpha is a parameter between zero and one. The chapter is explaining the equation. I don't understand the concept (math) of how the books gets to

(Y/L)1-α= (K/L)α (E)1-α
after it divides both sides by (Y/L)α

Thanks so much and I hope this makes sense

α=alpha (superscript)
1-α=1 minus alpha (superscript)

Y/L=(K/L)α (E)1-α

Rewrite K/L as (K/Y) times (Y/L)

Y/L=(K/Y)α (Y/L)α (E)1-α

Divide both sides by (Y/L)α

(Y/L)1-α= (K/L)α (E)1-α -->Please can someone help me
understand how you get (Y/L)1-α
I don’t understand the logic. Does it have to do with power rule?.
 
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You need to provide more information. Just where does this come from? What are you trying to accomplish. We cannot read your mind, you need to provide some background information.
 
And please explain your notation. You say "Rewrite K/L as (K/Y) times (Y/L)" but then write it as " (K/Y, Y/L)". Do you mean just (K/Y)(Y/L)? Is "1- a" a subscript? I can see no reason for writing 1 if it just multiplying numbers. Finally, what power rule are you talking about? The only power rule I can think of is for differentiating and there is no differentiation here.
 
As the others have asked you to do, you have to explain what are you trying to show? What is the final answer you want to arrive at?

Following your working, all I can say is that dividing the equation by \frac{Y}{L} \alpha gives \frac{1}{\alpha} = \frac{K}{Y} E (1-\alpha).

L disappears because it gets divided by both sides. So that's clearly not what you want.
 
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