Multi-Plant Firms, Variable Capacity Utilization, and the Aggregate Hours Elasticity

Damian Pierri and Domenico Ferraro ()
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Domenico Ferraro: Arizona State University. Department of Economics.

No 2024-96, Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) from Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET)

Abstract: The paper develops a business cycle model with multi-plant firms featuring minimum labor requirements that generate occasionally binding capacity constraints, implying state-dependent and nonlinear effects of labor tax changes on aggregate hours.

Keywords: Capacity utilization; Labor taxes; Aggregate hours elasticity; Multi-plant firms; Hours constraints (search for similar items in EconPapers)
JEL-codes: E22 E23 E24 E32 E62 H24 H25 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2024-11
New Economics Papers: this item is included in nep-dge, nep-mac and nep-pbe
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Working Paper: Multi-Plant Firms, Variable Capacity Utilization, and the Aggregate Hours Elasticity (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ake:iiepdt:2024-96

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