Returns to scale and externalities in the consumption and investment sectors |
| |
Authors: | Sharon G. Harrison |
| |
Affiliation: | Department of Economics, Barnard College, Columbia University, 3009 Broadway, New York, NY 10027, USA |
| |
Abstract: | Using data on US manufacturing, I estimate internal returns to scale and external effects for the consumption and investment sectors. I construct panels of data at the industry level and use results of gross output production function estimation to derive implied estimates in a value added specification. For the investment sector, returns to scale appear to be slightly increasing, with evidence of a positive external effect. For consumption, the evidence indicates decreasing to constant returns to scale. I discuss the implications of these results for the empirical plausibility of indeterminacy in recent multi-sector models of the business cycle. |
| |
Keywords: | Production function Sector-specific externalities Increasing returns to scale |
本文献已被 ScienceDirect 等数据库收录! |
|