search query: @indexterm productivity / total: 1465
reference: 593 / 1465
| Author: | Eden, B. Griliches, Z. |
| Title: | Productivity, market power, and capacity utilization when spot markets are complete. |
| Journal: | American Economic Review
1993 : MAY, VOL. 83:2, p. 219-223 |
| Index terms: | CAPACITY UTILIZATION PRODUCTIVITY LABOUR |
| Language: | eng |
| Abstract: | Robert Hall found that the short-run elasticity of output with respect to labor is too high relative to the prediction of the standard competitive spot-market model. Hall assumes that the marginal product of capital is zero whenever capacity is not fully utilized, and therefore labor should take all the credit for the increase in output. When trade occurs sequentally, as in the complete spot- markets model, Hall's equation is misspecified: a continous proxy of capacity utilization should be in the regression. Looking at capacity instead of output as the choice variable the authors cannot reject the price-taking hypothesis decisively. |
SCIMA