Skip to Main content Skip to Navigation
Journal articles

How do firms adjust production factors to the cycle?

Abstract : This paper studies the adjustment of production factors to the cycle taking into account factor utilization in multiple dimensions (labor working time, capital operating time and capital capacity utilization) and examines the impact of obstacles to increasing capital operating time on this adjustment path. Factor utilization adjusts the most rapidly, first through capital capacity utilization and capital operating time and then labor working time. The adjustment is slow for the number of employees and even slower for the capital stock. Obstacles to increasing capital operating time lead to a slower adjustment of capital operating time, offset by a stronger adjustment of capacity utilization.
Document type :
Journal articles
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Friday, February 11, 2022 - 5:38:58 PM
Last modification on : Tuesday, February 22, 2022 - 3:35:38 AM
Long-term archiving on: : Thursday, May 12, 2022 - 7:17:09 PM


How do firms adjust production...
Files produced by the author(s)




Gilbert Cette, Rémy Lecat, Ahmed Ould Ahmed Jiddou. How do firms adjust production factors to the cycle?. The B.E. Journal of Macroeconomics, 2016, 16 (2), ⟨10.1515/bejm-2014-0099⟩. ⟨hal-03566891⟩



Record views


Files downloads