Publication:
Input cost, capacity utilization and substitution in the short run

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorDelgado, Miguel A.
dc.contributor.authorJaumandreu, Jordi
dc.contributor.authorMartín Marcos, Ana
dc.contributor.otherFundación Empresa Pública. Programa de Investigaciones Económicas
dc.date.accessioned2009-10-28T09:35:05Z
dc.date.available2009-10-28T09:35:05Z
dc.date.issued1997
dc.description.abstractThis article studies the behavior of input cost shares, in an environment where labor is costly to variate, materials can variate at no cost and capital is fixed. A model relating cost shares with relative prices and adjustment costs is proposed, allowing joint estimation of the elasticity of substitution and the adjustment cost function, which is an unknown function of the capacity utilization. Based on a panel of more than 700 manufacturing firms we find evidence of strong input share variations according to the degree of capacity utilization. The estimated shapes of adjustment costs of labor are in agreement with our theoretical model, and we obtain sensible elasticities of substitution estimates. Based on such estimates, we find evidence of a negative (positive) bias in downturns (recoveries) in conventional productivity growth measures.
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.identifier.urihttp://hdl.handle.net/10016/5284
dc.language.isoeng
dc.relation.hasversionhttp://hdl.handle.net/10016/4676
dc.relation.hasversionhttp://hdl.handle.net/10016/2444
dc.relation.ispartofseriesDocumento de trabajo
dc.relation.ispartofseries9704
dc.rights.accessRightsopen access
dc.subject.ecienciaEconomía
dc.titleInput cost, capacity utilization and substitution in the short run
dc.typeworking paper*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
input_cost_FEP_dt_9704.pdf
Size:
338.37 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DE - Otros documentos
Economists Online