Production Factor Returns: The Role of Factor Utilization

Gilbert Cette, Nicolas Dromel, Rémy Lecat and Anne Paret

The Review of Economics and Statistics, 2015, vol. 97, issue 1, 134-143

Abstract: Short-term increasing returns to production factors are usually found in empirical studies. We argue they can be due to omitted variables, particularly the intensity of factor utilization. Thanks to original French firm-level data (1992–2008), we show how increasing returns to scale disappear when working time, capacity utilization rate, and, particularly, capital operating time are introduced in the production function. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology

Keywords: returns; production factors; factor utilization (search for similar items in EconPapers)
JEL-codes: B00 L00 (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: Production Factor Returns: The Role of Factor Utilization (2015)
Working Paper: Production Factor Returns: The Role of Factor Utilization (2015)
Working Paper: Production Factor Returns: The Role of Factor Utilization (2015)
Working Paper: Production factor returns: the role of factor utilisation (2011)
Working Paper: Production factor returns: the role of factor utilisation (2011)
Working Paper: Production factor returns: the role of factor utilisation (2011)
Working Paper: Production factor returns: the role of factor utilisation (2011)
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