The rest of the paper is concerned with developing numerous empirical
implications of this theory, starting with determinants of hours worked and
concluding with an economic interpretation of various queueing systems.
To simplify the presentation, it is assumed that the distinction between direct
and indirect costs is equivalent to that between goods and time costs; in
other words, the marginal forgone cost of the use of goods, cj, is set equal to
zero. The discussion would not be much changed, but would be more
cumbersome were this not assumed.' Finally, until Section IV goods
and time are assumed to be used in fixed proportions in producing com-
modities; that is, the coefficients bi and tj in equation (8) are treated as
constants.