A Theory of Factor Allocation and Plant Size

Creator Series Issue number
  • 325
Date Created
  • 2003-10
  • In this paper we develop a theory of how factors interact at the plant level. The theory has implications for (1) the micro foundations for capital-skill complementarity, (2) the relationship between factor allocation and plant size, and (3) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation and factor price changes in the 19th and 20th centuries.

Subject (JEL) Related information Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
  • Federal Reserve Bank of Minneapolis
Resource type DOI


In Collection:
Zuletzt geändert

Herunterladbarer Inhalt

PDF Herunterladen

Zipped Files

Download a zip file that contains all the files in this work.