share of each craftsman’s labor required for a certain retrofit measure. The total
cost for one of the 16 retrofit combinations j is given as the sum among the
surface Ar of retrofitted components r from household i as follows:
local wageic
> ζc—------------------ * average-unit costr * Air,
r c national aver. wagec r
with subscript c denoting the category of craftsman and ζc representing the share
of craftsman c’s labor in the retrofit.13 While households are denoted by the
subscript i, the term “local wageic” captures the wage of craftsman c in i’s mu-
nicipality.
13We checked our estimates of the average-unit cost against other published estimates (e.g.
Jakob (2006) or Finanztest (2007)) and found the figures to be commensurate.
29
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