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

Author

Listed:
  • Damián Pierri

    (Universidad de Buenos Aires. Facultad de Ciencias Económicas. CONICET–Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP). Buenos Aires, Argentina.)

  • Domenico Ferraro

    (Arizona State University. Department of Economics.)

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.

Suggested Citation

  • Damián Pierri & Domenico Ferraro, 2024. "Multi-Plant Firms, Variable Capacity Utilization, and the Aggregate Hours Elasticity," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2024-96, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).
    • Handle: RePEc:ake:iiepdt:2024-96
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    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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