Production factor returns: the role of factor utilisation

Gilbert Cette, Nicolas Dromel, Rémy Lecat and Anne Paret

Working papers from Banque de France

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 utilisation. Thanks to original French firm-level data (1992-2008), we show how increasing returns to scale disappear when working time, capacity utilisation rate and mainly capital operating time are introduced in the production function.

Keywords: Production function; productivity; factor returns. (search for similar items in EconPapers)
JEL-codes: D22 D24 E22 O40 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (2)

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https://publications.banque-france.fr/sites/defaul ... g-paper_317_2011.pdf (application/pdf)

Related works:
Journal Article: 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 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)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:317

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