When we solve for steady state, can we assume that the total output is 1?

[wangshiye]

If the production function is a Copulglas function, can we assume that total output is 1 to reverse the steady state of productivity? I remember an article that said it would work. Can professor Jpfeifer do this?

[jpfeifer]

See

Is this steady state assumption right?

Sometimes we set the average TFP such that output is normalized to 1 in steady state (i.e. y=af(\cdot) s.t. y=1). Nonetheless in my model, the labor endowment is also normalized to 1 (i.e. unemp. + out\;of\;labor + labor=L=1), is that right? Thanks!!