Factor World is a term used by William Easterly to describe the traditional model of aggregate production function which is: Y = K^α . (AL)^(1-α) William Easterly is Professor of Economics at New York University, joint with Africa House, and Co-Director of NYU’s Development Research Institute. ... Look up Aggregate in Wiktionary, the free dictionary. ... In microeconomics, a production function expresses the relationship between an organizations inputs and its outputs. ...

It is a model of Factors of production movement based on free movement of those factors which in theory would reduce inequality between nations. In economics, factors of production are resources used in the production of goods and services. ...

It is used as the opposite of Productivity world which claims relative productivity amongst factors is the same in the sectors across countries, but rich countries have absolute productivity advantage.