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Bug #61

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Labor's Effect on Land Function

Added by Will Conboy over 2 years ago. Updated about 2 years ago.

Status:
New
Priority:
Normal
Assignee:
Category:
-
Start date:
01/21/2022
Due date:
% Done:

100%

Estimated time:

Description

In constructing the Labor's Effect on Land function (open to suggestions on the naming), I started with all properties that it should have:
At 0 Labor, the effect should be 0. The land might endogenously change, but labor has no effect if there is no labor.
The function needs a constant which impacts how much new labor can affect the land (might be linear, like in Jacob's 2 lumberjack example, but could potentially be less, or in odd scenarios, greater).
A firm with a positive competency should have a positive impact on the land, while a firm with negative competency should have a negative impact on the land (this range can be shifted).
https://www.desmos.com/calculator/mc1s9wy58u
D_L: Labor's Effect on Land
M: Worst case scenario impact on land
C_F: Firm competency
Beta: Marginal effect of labor on land
L: Labor
Some assumptions this function makes:
The marginal effect on labor is the same whether degrading or improving the land
Worst case scenario is the exact opposite of best case scenario
The second assumption might be an issue. I can think of some examples where the capability of improving the land (M) is vastly different from the capability of making the land worse (-M). However, complicating this might be difficult. Would love your thoughts.

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