Capital Utilization and the Willingness to Rest: A General Equilibrium Analysis
This paper develops a general equilibrium model acknowledging that greater capital utilization requires either longer hours or unsocial schedules. Contrary to the popular depreciation-in-use models, capital utilization does not only concern the firms' organisational choices but also labor supply behaviours, since an increase in the workweek of capital affects the households' welfare. Capital utilization and shiftworking are endogenously determined as equilibrium outcomes though - this was not the case in previous studies linking capital utilization to work conditions. A number of relevant cases where capital utilization does vary over the cycle are numerically illustrated : factor complementarity, quasi-fixity of input stocks and nominal rigidities.
|Date of creation:||01 Aug 2000|
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- Licandro, Omar, 1991.
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UC3M Working papers. Economics
2794, Universidad Carlos III de Madrid. Departamento de Economía.
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RCER Working Papers
260, University of Rochester - Center for Economic Research (RCER).
- repec:crs:wpaper:9928 is not listed on IDEAS
- Martial DUPAIGNE, 1998. "Capital operating time and economic fluctuations," Discussion Papers (REL - Recherches Economiques de Louvain) 1998031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Jean-François Fagnart & Omar Licandro & Franck Portier, 1999. "Firm Heterogeneity, Capacity Utilization and the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(2), pages 433-455, April.
- Wen, Yi, 1998. "Capacity Utilization under Increasing Returns to Scale," Journal of Economic Theory, Elsevier, vol. 81(1), pages 7-36, July.
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